Encino Motorcars, LLC v. Navarro (15-415)

argument 15-415

Encino Motorcars, LLC v. Navarro

Supreme Court of the United States 1h 2m 6 speakers 7 chapters transcribed 7 days ago official recording ↗

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What is the central dispute over whether service advisors are considered salespeople?

John G. Roberts 0:00

We'll hear argument next in case fifteen four fifteen Encino Motor Cars versus Navarro. mister Clement.

Trevor W. Hill 0:07

Mr. Chief Justice, and may it please the court. Service advisors are salespeople principally engaged in the servicing of automobiles. I do not think there is any realistic dispute here that service advisors are in fact salespeople. And it seems clear to me that service advisors, as their name suggests, are principally engaged in the servicing of automobiles. Thus, under the plain and literal terms of the statutory overtime exemption, these individuals are exempt because the statute exempts any salesperson mechanic or partsman who are princip primarily engaged in s selling or servicing an automobile, a truck or a farm implement. Now, my friends on the other side will essentially concede that those last three statutory nouns, automobiles, trucks, and farm implements, apply to every other noun-verb combination in the statute.

How does the compensation structure (commission vs. salary) affect the overtime exemption analysis?

Trevor W. Hill 1:08

So they don't take the position, for example, that trucks and farm implements only go with servicing and automobiles only go with selling. But they do take the position that with respect to the Baron's selling that it goes uniquely with salesmen, and therefore, even if you accept for a minute that there is a class of people who exist who are salesmen primarily engaged in the servicing of automobiles, my friends would say they're not covered by the statute. Now I would submit that the statute has multiple textual indicators of breath that suggest that's not the right way to interpret the statute. Mr. Okay. May

Ruth Bader Ginsburg 1:45

may may I ask you uh W what is the significance Of the position you're taking, does it have any real consequences Given the separate exemption for people who were working on commission.

Trevor W. Hill 2:02

It it does it it does have real world consequences, Justice Ginsburg, principally for those service advisors who right now are not compensated on a commission basis.

Ruth Bader Ginsburg 2:13

And what in in in this field? what percentage of service advisors are not commissioned? Rather than salaried employees.

Trevor W. Hill 2:25

Justice Ginsburg, I don't have a specific statistical breakdown, but I am reliably informed that it is a significant number. So it's not that almost everybody is on a commissions basis and there's a couple of outliers who are primarily salaried. I do think the the the arch typical service advisor is paid on a commission basis, and therefore what I take to be the import of your question might also qualify under the 207i exemption. that is generally applicable across industries to commissioned individuals. But there are significant numbers of individuals

What textual arguments are made about the statute’s “selling” and “servicing” language?

Trevor W. Hill 2:57

who are primarily compensated for salary and they like it that way. And of course, as I think the Court is aware, these Fair Labour Standard Act rules are not waivable. So if you have a service advisor who has been paid primarily by salary and likes the stability that comes with that, they have had that understanding.

Elena Kagan 3:17

What's that? That's every employee whose salary They Yes. They want a job. It's a job and unless the law protected them, no employer would pay overtime. Well I I understand that I I don't know how I can take from the fact that service advisors accept what's given to them because they have no choice. why they prefer not to have overtime.

Trevor W. Hill 3:41

I don't know that I was making that strong claim. I was just trying to be responsive that this case does have real world implications, notwithstanding the seven I exemption.

Stephen G. Breyer 3:50

So what what what example uh what uh if if you're we're only talking about those of the the people who sell service? who are not on commission. What basis is there for giving them an exception? They work regular hours. I take it. If they work regular hours And if they uh are paid on commission. Why wouldn't they be treated like secretaries or others? I mean Apparently Congress Four. that the mechanics themselves were special 'cause they go out into agricultural areas or something in the middle of the night. Fix a tractor. So so they work irregular hours, but these people don't work irregular hours. And they're not paid on commission, so why would they be treated like a secretary or a or a you see you got my question.