Section 7(i) of the Fair Labor Standards Act (FLSA) provides an often overlooked, but useful, exemption to an employer’s overtime obligations for certain commission-based employees of retail and service establishments. However, to claim the exemption, employers must first determine: are they a “retail or service establishment?” Click here to continue reading.
In this week’s L&E Legal Alert, Jennifer Yee and Josh Woodard take a deeper dive into the Encino Motorcars, LLC v. Navarro where the U.S. Supreme Court rejected the longstanding principle that courts construe FLSA exemptions narrowly and, instead, adopted a “fair reading” standard. For more information, see here.
In a 5-4 opinion issued on April 2nd, the United States Supreme Court held that service advisers at car dealerships are exempt from the overtime pay requirement of the FLSA because they are “salesm[e]n . . . primarily engaged in . . . servicing automobiles.” This ruling is significant for not only the auto industry, […]