Encino Motorcars v. Navarro (Argument January 17, 2018)

Employment Law

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See how it turned out!

Have you ever had your car serviced at the dealership? This case is about the person who greets you: the service advisor.

Code:

Is the service advisor exempt from overtime pay, or should the role get paid more for working over 40 hours/week?

The law involved

The Fair Labor Standards Act was passed by FDR in 1938 as part of "New Deal" legislation. It sets minimum wage, overtime pay and child labor standards. The first minimum wage standard was 25 cents per hour, and the workweek was limited to 44 hours per week (changed in 1940 to 40 hours). 

Overtime pay

This case is about the overtime pay requirements. The FLSA requires employers to pay workers who work more hours than the workweek (40 hours). Certain roles are "exempt" from the overtime pay requirement (which means they do not get overtime pay). The rules limit which roles can be exempt.

This case

In this case, service advisors argue they are not exempt and thus should get paid more when they work over 40 hours. The car dealership disagrees. The Supreme Court will determine its answer based on the provision of the FLSA cited in our infographic.

Another employment law case of this term

Soon, the Supreme Court will be issuing a decision on another employment law case of this term. Can employees sign away their rights to bring class action cases against their employers? View our argument explainer of the "NLRA consolidated case" here.