Just when you think you have
everything under control, some new problem or challenge comes
along. It is that way with many things and the law is no exception.
The federal-wage hour law, called the Fair Labor Standards Act
(FLSA), was passed in 1938, so you would think that in the last 70+
years, the courts and the Department of Labor have resolved every
issue once and for all. Unfortunately, that is not the case.
As most dealers know, the FLSA
contains a number of exemptions from overtime that dealerships rely
on. One important exemption, which has been in the law since 1966,
exempts from overtime:any salesman, partsman, or mechanic primarily
engaged in selling or servicing automobiles, trucks or farm
implements, if he is employed by a nonmanufacturing establishment
primarily engaged in the business of selling such vehicles or
implements to the ultimate purchaser.
