Auto Dealers Lead the Way for Ignoring Certain Federal Regulations

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Not all federal regulations reflect a rule of law. In fact, some are not even given deference by the courts as a legitimate interpretation of the law. The U.S. Supreme Court recently concluded that certain federal regulations can and should be ignored. In Encino Motorcars, LLC v. Navarro, the Court unanimously rejected the procedurally defective regulations of the U.S. Department of Labor (“DOL”) requiring service advisors of automobile dealerships be eligible for overtime pay under the Fair Labor Standards Act (“FLSA”).

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