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Service staff overtime exemption extended through September

April 12, 2013
Legislation which funds the federal government’s activities through September and signed into law in late March continues a 40-year precedent of exempting service advisors from federal overtime pay requirements.
Two years ago, the U.S. Department of Labor sought to overturn more than four decades of precedent by saying that service salespersons no longer were eligible for the federal “salesmen” overtime exemption. That position directly conflicts with numerous federal district and circuit court decisions, including at least two issued in 2012, that have consistently found service writers to be exempt “salesmen.” In 2011, the National Automobile Dealers Association urged Congress to exercise greater oversight on the matter. 
Since then, language was included in the last three federal spending measures, squashing any attempt by the labor department to change its position or initiate any enforcement action.
“The NADA applauds Congress’ latest action and urges federal lawmakers to make the ban permanent,” said NADA Chairman David Westcott, a dealer from North Carolina.  
Dealers with questions on this or other labor matters should contact the NADA at (703) 821-7000.