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Left to right: Todd B. Scherwin, Wendy McGuire Coats and Karl R. Lindegren of Fisher Phillips

On April 2, the United States Supreme Court handed auto dealerships a long-awaited 5-4 victory in Encino Motorcars v. Navarro, holding service advisers are exempt from the Fair Labor Standards Act’s overtime-pay requirement because they are “salesm[en] … primarily engaged in … servicing automobiles.” After close to six years and two trips to the high court, the decision restored decades of unsettled dealership practice, until the U.S. Department of Labor’s stunning and controversial 2011 agency decision. Ultimately, the decision ratifies roughly 40 years of established pay practices for the approximately 100,000 service advisers employed at dealerships throughout the United States.

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