Plaintiffs, “service advisors” at a Mercedes Benz dealership, were required to meet and greet Mercedes owners to evaluate the service and/or repair needs of each vehicle based on the owners’ complaints, suggest the services to be performed (including additional services beyond those required to address the needs of the complaints), and then write an estimate for the repairs and services for the customers and take the cars to the mechanics for services and repairs. Service advisors were expected to call vehicle owners while the vehicles were with Defendant’s mechanics and suggest further repairs to the owners at additional cost. The position was paid on a commission-only basis.

Plaintiffs alleged Defendant failed to pay overtime wages pursuant to the Fair Labor Standards Act of 1938 (FLSA).[i] Defendant contended Plaintiffs were exempt from FLSA’s overtime provisions as salesmen (“any salesman, partsman, or mechanic primarily engaged in selling or servicing automobiles”) and therefore Defendant had no obligation to pay overtime wages to service advisors.[ii] The district court ruled that the service advisors fell within the ambit of the exemption and dismissed the overtime claim.