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Administrative Law Keyed to Popper
Encino Motorcars, LLC v. Navarro
Citation:
136 S. Ct. 2117 (2016)Facts
Service advisors at Encino Motorcars, a Mercedes-Benz dealership, interact with customers by meeting with them, listening to their concerns about their vehicles, suggesting repair and maintenance services, selling new accessories or replacement parts, and explaining completed work. They were paid on commission rather than hourly wages or salary. The Department of Labor had a decades-long practice of treating service advisors as exempt from FLSA overtime requirements, which dealerships relied upon in structuring their compensation arrangements. In 2011, the DOL reversed this position through a final rule, determining that service advisors were not exempt under § 213(b)(10)(A). However, the DOL provided minimal explanation for this change, merely stating that “the statute does not include such positions” and that the Department “believes that this interpretation is reasonable.” The service advisors sued Encino Motorcars for failing to pay overtime compensation.
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