Car Dealerships

News & Analysis as of

Ninth Circuit Rules Service Advisors at Automotive Dealerships Are Not Exempt From Overtime Pay

On January 9, 2017, the U.S. Ninth Circuit Court of Appeals ruled in Navarro v. Encino Motorcars, for the second time, that service advisors at automotive dealerships are not exempt from overtime. In 2015, the Ninth Circuit...more

Groundhog Day Comes Early For West Coast Auto Dealers: Another Loss In Service Advisor Exemption Battle

In a disappointing but perhaps unsurprising decision, the 9th Circuit Court of Appeals once again ruled that service advisors employed by automobile dealerships do not qualify for the Section 13(b)(10)(A) overtime exemption...more

Ninth Circuit Reaffirms Service Advisors Eligible for Overtime, Setting Up Second Potential Trip to Supreme Court

The U.S. Supreme Court in 2016 granted certiorari in Encino Motorcars, LLC v. Navarro to resolve a circuit split regarding whether “service advisors” at automobile dealerships are exempt from receiving overtime under the Fair...more

Automobile Dealerships and Part Suppliers: Unintended Consequences in Whistleblower Rules?

OSHA enforces laws that protect whistleblowers under 22 whistleblower statutes ranging from the Asbestos Hazard Emergency Response Act to the Wendell H. Ford Aviation Investment Reform Act for the 21st Century. This article...more

Jamming Out Costs New York Auto Dealerships Millions

New York Attorney General Eric T. Schneiderman recently announced a $1.6 million settlement with two auto dealerships, SG Hylan Motors and Best Auto Outlet, Inc., who were found to have engaged in jamming schemes between 2010...more

OnSite Solutions to Pay $50,000 to Settle Race Discrimination Charges

Manager Replaced Black Workers With Whites and Hispanics In Order to "Sprinkle a Little Salt," Federal Agency Charged - OKLAHOMA CITY - Automobile detailing business OnSite Solutions, LLC will pay $50,000 to settle a...more

The Country’s In For A Big Change…Are You Ready?

The time is quickly running out for you to make your decision about what you’re going to do. Which direction will you choose? Some have already made up their minds and are steadfast in their decision. Some are still...more

Leave The Political Boxing Gloves At The Office Door

We love a good political fight, but dealerships would be well-advised to check the gloves at the office door and instead heed the wisdom offered long ago by Calvin Coolidge: “No man ever listened himself out of a job.”...more

Yet Another Micro-Unit Victory, NLRB Refuses to Review Decision Certifying Service Technicians-Only Bargaining Unit

In the midst of what appears to be a proliferation of “micro-units,” on Tuesday, October 18, 2016, the NLRB declined to reconsider its decision to certify a unit of 14 service technicians employed by the Buena Park Honda...more

Landmark Decision Issued by the Italian Supreme Court in the Automotive Sector

A resounding judicial victory was scored in Italy this fall by Bryan Cave’s affiliated office (“SILS”) on behalf of the Volkswagen Group. The Supreme Court of Italy (“Corte di Cassazione”) rejected all claims brought...more

U.S. Supreme Court Declines to Hear Challenge to New Hampshire’s “Auto Dealer’s Bill of Rights”

The protracted challenge to New Hampshire Senate Bill 126, which amended New Hampshire’s Motor Vehicle Franchise Act to include farm, industrial, construction, forestry, and yard and garden equipment, has finally come to an...more

FTC Targets Auto Dealers, Alleges Deceptive Financing Practices

The Federal Trade Commission (FTC) has filed an action against nine auto dealerships and their individual owners in a California federal court that the FTC described as its "first action against an auto dealer for 'yo-yo'...more

FTC Files Complaint Against Nine Auto Dealers Over Financing Practices

On September 29, the Federal Trade Commission (FTC) announced that it had filed a complaint in the U.S. District Court for the Central District of California against nine auto dealers for purportedly engaging in deceptive and...more

What Is The Section 7(i) Exemption And Does It Apply To Auto Dealer Service Advisers?

Over the summer, the U.S. Supreme Court punted on the question of whether “Service Advisers” or “Service Writers” at auto dealerships fall within the Fair Labor Standards Act’s exemption for “any salesman, partsman, or...more

Are Your Pay Practices Still Compliant?

By now you have likely heard about a recent Supreme Court decision and a change in federal wage and hour regulations that have a direct impact on the retail automotive industry. The good news is that the Supreme Court...more

California High Court Rules that Contract Principles Govern Who Decides the Availability of Class Arbitration Under an Arbitration...

On July 28, 2016, in Sandquist v. Lebo Automotive, Inc., the California Supreme Court (the “Court”) held that the underlying arbitration agreement, as interpreted under California contract principles, should determine whether...more

Dealerships On Pins And Needles After Latest Union Pin Decision

Doug Niedermeyer is not the most sympathetic character in American film, but any dealership manager faced with employees who want to wear union pins, buttons, or other insignia might understand his frustration. To many...more

Auto Dealers Lead the Way for Ignoring Certain Federal Regulations

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...more

Texas Court Of Appeals Reduces $115 Million Punitive Award To A Mere Shadow Of Itself

Courts applying BMW and State Farm often emphasize the Supreme Court’s admonition that the constitutional line is not “marked by a simple mathematical formula”—typically when rejecting a defendant’s argument that the ratio of...more

FTC Consent Order Creates Uncertainty for Advertising of Credit, Lease Offers

A recent Federal Trade Commission (FTC) consent order with two Ohio auto dealers creates uncertainty not only for auto dealers, but also for all other businesses advertising credit or lease offers. The order settled...more

Have a Contract in Canada? Your Class Action Risk is Greater Than You May Think

Non-Canadian companies: welcome to the Canadian class action party. In recent years, Canadians have increasingly begun to recognize and actively manage the major business risk posed by class actions, as more and more...more

Defence & Indemnity - June 2016: II. LIABILITY ISSUES #3

Both the legal/registered owner and lessor and the beneficial owner and lessor of a vehicle are vicariously liable for the lessee’s vehicular negligence but only to the liability cap for lessors. Graham (Litigation...more

Buyer Beware: Used Cars Subject to Different Protections Than New Cars

The new highway bill that recently was signed into law seems to have been influenced by the automotive industry because it does not require used-car dealerships to make repairs on vehicles with open recalls, leaving buyers...more

Supreme Court Punts on Whether Service Advisors Are Exempt from FLSA Overtime Premium Pay

The United States Supreme Court recently issued its long awaited decision in Encino Motorcars, LLC v. Navarro. At issue in the case was whether “service advisors” employed by car dealerships are exempt from the Fair Labor...more

Supreme Court Passes Automobile Dealership Service Advisor Exemption Issue Back to Lower Court

On June 20, 2016, the U.S. Supreme Court declined to provide a definitive opinion on a pay issue that has concerned automobile dealerships for years. The question involves whether dealership service advisors fall under the...more

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