NADA: With Recently Signed Law, Overtime Exemption for Service Advisers Extended

The National Automobile Dealers Association highlighted that Congressional legislation signed into law late last week to prevent a government shutdown includes an extension of a federal overtime exemption for service advisers through March.
NADA officials recapped that since the late 1970s, the U.S. Department of Labor has held that the frontline employee-salespersons in the service department remain exempt from federal time-and-a-half pay requirements. They mentioned that last year DOL attempted to reverse this policy.
The association indicated Congress intervened and temporarily stopped the department from enforcing the change. The Congressional ban was included in a funding measure that was set to expire at the end of September.
Under the new continuing resolution that extends government spending through March, NADA explained that DOL is prevented from enacting the new policy for service salespeople.
“Reversing 40 years of precedence of overtime requirements for service advisers could force dealers to make potentially costly compensation and staffing changes,” said NADA chairman Bill Underriner.
“Altering overtime rules after 40 years with little to no justification hinders a dealer’s ability to create new jobs,” Underriner continued.
Even with DOL’s restrictions in place, NADA has assisted several dealers involved in wage and hour audits by notifying "overly-aggressive" federal inspectors of the prohibition.
Underriner also recognized Rep. Denny Rehberg, who chairs the House subcommittee that funds the DOL.
“Under Chairman Rehberg’s leadership, Congress extended the overtime exemption for service advisers until March 27, 2013. America's franchised auto dealers applaud his efforts,” Underriner added.