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Supreme Court sends back service advisor case

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in Compensation and Benefits

The U.S. Supreme Court has sent a case back to the 9th Circuit Court of Appeals without deciding if automobile service advisors are exempt.

Recent case: The case involved service advisors who worked at a Los Angeles-area auto dealership. Advisors meet and explain repair needs to customers. The dealership claimed they were exempt as auto salesmen. On appeal, the 9th Circuit reversed, deferring to a 2011 Department of Labor regulation excluding service advisors from the exemption.

The Supreme Court ruled that the regulation was invalid because the DOL had not adequately explained its reasoning. The 9th Circuit will now have to determine whether service advisors are exempt auto salesmen without relying on the DOL regulation. (Encino Motorcars v. Navarro, No. 15-415, U.S. Supreme Court, 2016)

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