On Monday of this week, the U.S. Supreme Court reversed the Ninth Circuit when it ruled in Encino Motorcars, LLC v. Navarro that auto dealership service advisors are exempt from the FLSA’s overtime requirements. The justices’ analysis led the five-justice majority to conclude that service advisors fall squarely within the applicable exemption for “any salesman, partsman or mechanic primarily engaged in selling or servicing automobiles.” 29 U.S.C. § 213(b)(10)(A). This case, however, promises broad national impact because the majority rejected the longstanding principle established through decades of FLSA jurisprudence that exemptions should be construed narrowly.
As reported by our sister blog, ADR: Advice from the Trenches, a federal district court in New York held that an arbitrator could not certify a “class” that included non-appearing members. While neither the U.S. Supreme Court nor various Courts of Appeal have grappled with the viability of a class arbitration award, courts in the Second Circuit are taking the lead in addressing such issues.