Hector Navarro v. Encino Motorcars

We consider here a question of first impression for our circuit: Are “service advisors” who work at a car dealership exempt from the overtime pay requirements of the Fair Labor Standards Act (FLSA) of 1938, 29 U.S.C. §§ 201-219 , under 29 U.S.C. § 213 (b)(10)(A), which exempts “any salesman, partsman, or mechanic primarily engaged in selling or servicing automobiles”? Reviewing de novo, Fortyune v. City of Lomita, 766 F.3d 1098, 1101 (9th Cir.2014), petition for cert. filed, 83 U.S.L.W. 3651 (U.S. Jan. 26, 2015) (No. 14-920), we answer that question “no” and, accordingly, reverse the district court’s holding to the contrary.

FACTUAL AND PROCEDURAL HISTORY

Defendant Encino Motorcars, LLC, sells and services new and used Mercedes-Benz automobiles. Defendant employed or employs Plaintiffs Hector Navarro, Mike Shirinian, Anthony Pinkins, Kevin Malone, and Reuben Castro as “service advisors.” The complaint alleges:

Defendant pays service advisors on a commission basis only; Plaintiffs receive neither an hourly wage nor a salary.

In 2012, Plaintiffs filed this action alleging, among other things, that Defendant has violated the FLSA by failing to pay overtime wages. The…