SUPREME COURT OF THE UNITED STATES
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No. 16–1362
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ENCINO MOTORCARS, LLC, PETITIONER
v. HECTOR NAVARRO, et al.
on writ of certiorari to the united states court of appeals for the ninth circuit
[April 2, 2018]
Justice Ginsburg, with whom Justice Breyer, Justice Sotomayor, and Justice Kagan join, dissenting.
Diverse categories of employees staff automobile dealerships. Of employees so engaged, Congress explicitly exempted from the Fair Labor Standards Act hours requirements only three occupations: salesmen, partsmen, and mechanics. The Court today approves the exemption of a fourth occupation: automobile service advisors. In accord with the judgment of the Court of Appeals for the Ninth Circuit, I would not enlarge the exemption to include service advisors or other occupations outside Congress’ enumeration.
Respondents are service advisors at a Mercedes-Benz automobile dealership in the Los Angeles area. They work regular hours, 7 a.m. to 6 p.m., at least five days per week, on the dealership premises. App. 54. Their weekly minimum is 55 hours. Maximum hours, for workers covered by the Fair Labor Standards Act (FLSA or Act), are 40 per week.
29 U. S. C. §207(a)(1). In this action, respondents seek time-and-a-half compensation for hours worked beyond the 40 per week maximum prescribed by the FLSA.
The question presented: Are service advisors exempt from receipt of overtime compensation under
29 U. S. C. §213(b)(10)(A)? That exemption covers “any salesman, partsman, or mechanic primarily engaged in selling or servicing automobiles.” Service advisors, such as respondents, neither sell automobiles nor service (
i.e., repair or maintain) vehicles. Rather, they “meet and greet [car] owners”; “solicit and sugges[t]” repair services “to remedy the [owner’s] complaints”; “solicit and suggest . . . supplemental [vehicle] service[s]”; and provide owners with cost estimates. App. 55. Because service advisors neither sell nor repair automobiles, they should remain outside the exemption and within the Act’s coverage.
I
In 1961, Congress exempted all automobile-dealership employees from the Act’s overtime-pay requirements. See Fair Labor Standards Amendments of 1961, §9,
75Stat.
73.[
1] Five years later, in 1966, Congress confined the dealership exemption to three categories of employees: automobile salesmen, mechanics, and partsmen. See Fair Labor Standards Amendments of 1966, §209,
80Stat.
836. At the time, it was well understood that mechanics perform “preventive maintenance” and “repairs,” Dept. of Labor, Occupational Outlook Handbook 477 (1966–1967 ed.) (Handbook), while partsmen requisition parts, “suppl[y] [them] to mechanics,”
id., at 312, and, at times, have “mechanical responsibilities in repairing parts,” Brief for International Association of Machinists and Aerospace Workers, AFL–CIO, as
Amicus Curiae 30; see Handbook, at 312–313 (partsmen may “measure parts for interchangeability,” test parts for “defect[s],” and “repair parts”). Congress did not exempt numerous other categories of dealership employees, among them, automobile painters, upholsterers, bookkeeping workers, cashiers, janitors, purchasing agents, shipping and receiving clerks, and, most relevant here, service advisors. These positions and their duties were well known at the time, as documented in U. S. Government catalogs of American jobs. See Handbook
, at XIII, XV, XVI (table of contents); Brief for International Association of Machinists and Aerospace Workers, AFL–CIO, as
Amicus Curiae 34 (noting “more than twenty distinct [job] classifications” in the service department alone).
“Where Congress explicitly enumerates certain exceptions . . . , additional exceptions are not to be implied, in the absence of evidence of a contrary legislative intent.”
TRW Inc. v.
Andrews,
534 U. S. 19, 28 (2001) (internal quotation marks omitted). The Court thus has no warrant to add to the three explicitly exempt categories (salesmen, partsmen, and mechanics) a fourth (service advisors) for which the Legislature did not provide. The reach of today’s ruling is uncertain, troublingly so: By expansively reading the exemption to encompass all salesmen, partsmen, and mechanics who are “integral to the servicing process,”
ante, at 6, the Court risks restoring much of what Congress intended the 1966 amendment to terminate,
i.e., the blanket exemption of all dealership employees from overtime-pay requirements.
II
Had the §213(b)(10)(A) exemption covered “any salesman or mechanic primarily engaged in selling or servicing automobiles,” there could be no argument that service advisors fit within it. Only “salesmen” primarily engaged in “selling” automobiles and “mechanics” primarily engaged in “servicing” them would fall outside the Act’s coverage. Service advisors, defined as “
salesmen primarily engaged in the
selling of services,”
Encino Motorcars, LLC v.
Navarro, 579 U. S. ___, ___ (2016) (Thomas, J., dissenting) (slip op., at 2) (emphasis added), plainly do not belong in either category. Moreover, even if the exemption were read to reach “salesmen” “primarily engaged in
servicing automobiles,” not just selling them, service advisors would not be exempt. The ordinary meaning of “servicing” is
“the action of maintaining or repairing a motor vehicle.”
Ante, at 6 (quoting 15 Oxford English Dictionary 39 (2d ed. 1989)). As described above, see
supra, at 2, service advisors neither maintain nor repair automobiles.[
2]
Petitioner stakes its case on Congress’ addition of the “partsman” job to the exemption. See Reply Brief 6–10. That inclusion, petitioner urges, has a vacuum effect: It draws into the exemption job categories other than the three for which Congress provided, in particular, service advisors. Because partsmen, like service advisors, neither “sell” nor “service” automobiles in the conventional sense, petitioner reasons, Congress must have intended the word “service” to mean something broader than repair and maintenance.
To begin with, petitioner’s premise is flawed. Unlike service advisors, partsmen “ ‘get their hands dirty’ by ‘working as a mechanic’s right-hand man or woman.’ ”
Encino Motorcars, 579 U. S., at ___, n. 1 (Ginsburg, J., concurring) (slip op., at 1, n. 1) (quoting Brief for Respondents in No. 15–415, p. 11; alterations omitted); see
supra, at 2–3 (describing duties of partsmen). As the Solicitor General put it last time this case was before the Court, a mechanic “might be able to obtain the parts to complete a repair without the real-time assistance of a partsman by his side.” Brief for United States as
Amicus Curiae in No. 15–415, p. 23. But dividing the “key [repair] tasks . . . between two individuals” only “reinforces” “that both the mechanic and the partsman are . . . involved in repairing (‘servicing’) the vehicle.”
Ibid. Service advisors, in contrast, “
sell . . .
services [to customers] for their vehicles,”
Encino Motorcars, 579 U. S., at ___ (slip op., at 2) (emphasis added)—services that are later performed by mechanics and partsmen.
Adding partsmen to the exemption, moreover, would be an exceptionally odd way for Congress to have indicated that “servicing” should be given a meaning deviating from its ordinary usage. There is a more straightforward explanation for Congress’ inclusion of partsmen alongside salesmen and mechanics: Common features of the three enumerated jobs make them unsuitable for overtime pay.
Both salesmen and mechanics work irregular hours, including nights and weekends, not uncommonly offsite, rendering time worked not easily tracked.[
3] As noted in the 1966 Senate floor debate, salesmen “go out at unusual hours, trying to earn commissions.” 112 Cong. Rec. 20504 (1966) (remarks of Sen. Bayh). See also
ibid. (remarks of Sen. Yarborough) (“[T]he salesman . . . [can] sell an Oldsmobile, a Pontiac, or a Buick all day long and all night. He is not under any overtime.”). Mechanics’ work may involve similar “difficult[ies] [in] keeping regular hours.”
Ibid. For example, mechanics may be required to “answe[r] calls in . . . rural areas,”
ibid., or to “go out on the field where there is a harvesting of sugarbeets,”
id., at 20505 (remarks of Sen. Clark).[
4] And, like salesmen, mechanics may be “subject to substantial seasonal variations in business.”
Id., at 20502 (remarks of Sen. Hruska).
Congress added “partsman” to the exemption because it believed that job, too, entailed irregular hours. See
ibid. This is “especially true,” several Senators emphasized, “in the farm equipment business where farmers, during planting, cultivating and harvesting seasons, may call on their dealers for parts at any time during the day or evening and on weekends.”
Ibid. (remarks of Sen. Bayh). See also
id., at 20503 (remarks of Sen. Mansfield). In Senator Bayh’s experience, for instance, a mechanic who “could not find [a] necessary part” after hours might “call the partsman, get him out of bed, and get him to come down to the store.”
Id., at 20504. See also
id., at 20503 (remarks of Sen. Hruska) (“Are we going to say to the farmer who needs a part . . . on Sunday: You cannot get a spark plug . . . because the partsman is not exempt, but you can have machinery repaired by a mechanic who is exempt[?]”). Although some Senators opposed adding partsmen to the exemption because, as they understood the job’s demands, partsmen did not work irregular hours,
e.g., id., at 20505 (remarks of Sen. Clark), the crux of the debate underscores the exemption’s rationale.
That rationale has no application here. Unlike salesmen, partsmen, and mechanics, service advisors “wor[k] ordinary, fixed schedules on-site.” Brief for Respondents 47 (citing Handbook, at 316). Respondents, for instance, work
regular 11-hour shifts, at all times of the year, for a weekly minimum of 55 hours. See App. 54. Service advisors thus do not implicate the concerns underlying the §213(b)(10)(A) exemption. Indeed, they are precisely the type of workers Congress intended the FLSA to shield “from the evil of overwork,”
Barrentine v.
Arkansas-Best Freight System, Inc.,
450 U. S. 728, 739 (1981) (internal quotation marks omitted).
I note, furthermore, that limiting the exemption to the three delineated jobs—salesman, partsman, and mechanic—does not leave the phrase “primarily engaged in selling or servicing,” §213(b)(10)(A), without utility. Congress included that language to ensure that only employees who actually perform the tasks commonly associated with the enumerated positions would be covered. Otherwise, for example, a worker who acts as a “salesman” in name only could lose the FLSA’s protections merely because of the formal title listed on the employer’s payroll records. See
Bowers v.
Fred Haas Toyota World, 2017 WL 5127289, *4 (SD Tex., June 21, 2017) (“[An employee’s] title alone is not dispositive of whether he meets the . . . exemption.”). Thus, by partsmen “primarily engaged in . . .
servicing automobiles,” Congress meant nothing more than partsmen primarily engaged in
the ordinary duties of a partsman,
i.e., requisitioning, supplying, and repairing parts. See
supra, at 2–3, 4–5. The inclusion of “partsman” therefore should not result in the removal of service advisors from the Act’s protections.
III
Petitioner contends that “affirming the decision below would disrupt decades of settled expectations” while exposing “employers to substantial retroactive liability.” Brief for Petitioner 51. “[M]any dealerships,” petitioner urges, “have offered compensation packages based primarily on sales commissions,” in reliance on court decisions and agency guidance ranking service advisors as exempt.
Id., at 51–52. Respondents here, for instance, are compensated on a “pure commission basis.” App. 55. Awarding retroactive overtime pay to employees who were “focused on earning commissions,” not “working a set number of hours,” petitioner argues, would yield an “unjustified windfal[l].” Brief for Petitioner 53.
Petitioner’s concerns are doubly overstated. As the Court previously acknowledged, see
Encino Motorcars, 579 U. S., at ___ (slip op., at 11), the FLSA provides an affirmative defense that explicitly protects regulated parties from retroactive liability for actions taken in good-faith reliance on superseded agency guidance. See
29 U. S. C. §259(a). Given the Department of Labor’s longstanding view that service advisors fit within the §213(b)(10)(A) exemption, see
ante, at 2, the reliance defense would surely shield employers from retroactive liability were the Court to construe the exemption properly.
Congress, moreover, has spoken directly to the treatment of
commission-based workers. The FLSA exempts from its overtime directives any employee of a “retail or service establishment” who receives more than half of his or her pay on commission, so long as the employee’s “regular rate of pay” is more than 1½ times the minimum wage. §207(i). Thus, even without the §213(b)(10)(A) exemption, many service advisors compensated on commission would remain ineligible for overtime remuneration.[
5]
In crafting the commission-pay exemption, Congress struck a deliberate balance: It exempted
higher paid commissioned employees, perhaps in recognition of their potentially irregular hours, see
Mechmet v.
Four Seasons Hotels, Ltd., 825 F. 2d 1173, 1176–1177 (CA7 1987); cf.
supra, at 5–7, but it maintained protection for
lower paid employees, to vindicate the Act’s “principal . . . purpose” of shielding “workers from substandard wages and oppressive working hours,”
Barrentine, 450 U. S., at 739.[
6] By stretching the §213(b)(10)(A) exemption to encompass even the lowest income service advisors compensated on commission, the Court upsets Congress’ careful balance, while stripping away protection for the most vulnerable workers in this occupation.
* * *
This Court once recognized that the “particularity” of FLSA exemptions “preclude[s] their enlargement by implication.”
Addison v.
Holly Hill Fruit Products, Inc.,
322 U. S. 607, 617 (1944). Employees outside the Act’s “narrow and specific” exemptions, the Court affirmed, “remain within the Act.”
Powell v.
United States Cartridge Co.,
339 U. S. 497, 517 (1950).[
7] The Court today, in adding an exemption of its own creation, veers away from that comprehension of the FLSA’s mission. I would instead resist, as the Ninth Circuit did, diminishment of the Act’s overtime strictures.