A California auto dealer is at the center of an interesting ruling by the United States Supreme Court today regarding overtime and FLSA regulations. The key issue is whether the US Labor Department has the authority to classify “service advisers” at the dealer to be classified as non-exempt employees under the federal wage and hour laws. The dealership claimed the service advisers are no different than car salesmen or the mechanics who are exempt from overtime requirements under existing Fair Labor Standards Act (FLSA) laws and regulations.
The Justices, in a 6 to 2 ruling, remanded the case to a lower court, ordering the Labor Department (DOL) to provide a much better explanation for why the DOL is making changes to longstanding policies (and case law) on which workers deserve overtime pay, and those who are exempt from overtime regulations.
This is an interesting development in the ever-changing landscape of overtime law and the new federal guidelines on overtime and exempt salary guidelines. In May of this year, the DOL released new regulations increasing the base salary for which non-exempt employees remain eligible for overtime pay (time and one half), expected to take effect December 1 later this year. San Diego employers have faced numerous changes in employment law in 2016, and require support and guidance to remain in compliance and avoid the potential for overtime and FLSA disputes and lawsuits.
The “lawyers for employers” at the Watkins Firm will review your internal policies, pay structures, and access to critical work systems including voice mail and email after hours. We advise our clients on all issues related to overtime and FLSA law, and help to develop strategies to reduce or eliminate our client’s exposure to unpaid overtime disputes, while ensuring compliance with federal, state and local employment laws.
If you are are a San Diego employer and you are concerned about FLSA or overtime laws, we invite you to contact us for a free consultation at 858-535-1511.