For several years now, a case out of the Ninth Circuit has gone back and forth on appeal, including to the U.S. Supreme Court, to try and settle the question of whether the Salesmen, Partsmen, and Mechanics exemption from overtime under the Fair Labor Standards Act includes service advisors/writers. In the latest round of this litigation, the Ninth Circuit Court of Appeals has again decided that service advisors are not exempt. In its decision, the court acknowledged that this ruling is in conflict with two other U.S. Circuit Courts of Appeal, and at least one state supreme court.

Because this decision is not binding in the Eighth Circuit (Minnesota), and because this decision still represents a minority opinion on the issue, MADA legal counsel recommends that dealers continue to treat service advisors as exempt employees.

This latest decision is ripe for yet another appeal. MADA will update members of any changes that may effect whether service advisors should continue to be treated as exempt from overtime under federal law.