McLEAN, Va. -

The National Automobile Dealers Association said Wednesday that legislation that funds the federal government’s activities through September and signed into law continues a 40-year precedent of exempting service advisors from federal overtime pay requirements.

NADA’s legislative affairs team recapped how this exemption became a target two years ago. The association indicated the U.S. Department of Labor sought to overturn more than four decades of precedent by saying that service salespersons were no longer eligible for the federal “salesmen” overtime exemption.

The association contends this position directly conflicts with numerous federal district and circuit court decisions — including at least two issued last year — that have consistently found service writers to be exempt “salesmen.”

In 2011, NADA urged Congress to exercise greater oversight on the matter. Since then, the organization indicated language was included in the last three federal spending measures squashing any attempt by DOL to change its position or initiate any enforcement action.

“NADA applauds Congress’ latest action and urges federal lawmakers to make the ban permanent,” NADA chairman David Westcott said.

Dealers with questions about this issue or other labor matters may contact NADA at (703) 821-7000.

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