Month: May 2018

On April 2, 2018, the Supreme Court decided Encino Motorcars v. Navarro, a case on its second trip to the high court regarding a dispute over the interpretation of the Fair Labor Standard Act’s overtime-pay requirements and whether it exempts service advisors at car dealerships.
Congress enacted the Fair Labor Standards Act (FLSA) in 1938 to “protect all covered workers from substandard wages and oppressive working hours,” and it requires overtime pay for employees covered under the Act who work more than 40 hours in a given week. The FLSA exempts from this requirement, however, “any salesman, partsman, or mechanic primarily engaged in selling or servicing automobiles, trucks, or farm implements, if he is employed by a nonmanufacturing establishment primarily engaged in the business of selling such vehicles or implements to ultimate purchasers….”
Hector Navarro and other service advisors filed suit against their employer Encino Motorcars, alleging that it violated the FLSA by failing to pay them overtime wages. Encino countered that as service advisors, Navarro and the other plaintiffs fell within the FLSA exemption. The district court ruled in favor of Encino, but the U.S. Court of Appeals for the Ninth Circuit reversed, relying upon a 2011 regulation issued by the Department of Labor (DOL) and indicating that service advisors were not covered by the exemption. The Supreme Court, however, thereafter vacated the judgment of the Ninth Circuit, determining that the regulation at issue was procedurally defective and remanded the case for the Ninth Circuit to reconsider without “placing controlling weight” on the DOL regulation. On remand, the Ninth Circuit, using the distributive canon of statutory interpretation, held that the FLSA exemption did not encompass service advisors. The Supreme Court again granted certiorari.
By a vote of 5-4, the Supreme Court reversed the judgment of the Ninth Circuit and remanded the case. In an opinion delivered by Justice Thomas, the Court held that “service advisors are exempt from the overtime-pay requirement of the FLSA because they are ‘salesm[e]n...primarily engaged in...servicing automobiles.’ §213(b)(10)(A)." Justice Thomas’ majority opinion was joined by the Chief Justice and Justices Kennedy, Alito, and Gorsuch. Justice Ginsburg filed a dissenting opinion, which was joined by Justices Breyer, Sotomayor, and Kagan.
To discuss the case, we have Tammy McCutchen, Principal at Littler Mendelson, PC.

As always, the Federalist Society takes no position on particular legal or public policy issues; all expressions of opinion are those of the speakers.

Today's episode discusses the recent fines levied against Wells Fargo in connection with two specific acts of egregious fraud against consumers.  Is it enough?  Is it proof that Trump (and Mick Mulvaney) intend rigorous defense of consumers at the CFPB?  Listen and find out! First, we delve into a grab bag of items, beginning with a heartfelt apology and Andrew Was Wrong regarding trans language.  Next, we deal with a couple of wacky legal cases, before settling in on a bevy of new gun control laws passed in Maryland.  Phew! Then, we move into a discussion of Trump v. Hawaii, which was argued before the Supreme Court last week.  What's the latest on the Travel Ban? After that, our "C" segment breaks down everything Wells Fargo. Finally, we end with the answer to Thomas Takes the Bar Exam Question #73 about lessees, assignees, and joint and several liability.  Don't forget to follow our Twitter feed (@Openargs) and like our Facebook Page so that you too can play along with #TTTBE! Recent Appearances As this show comes out, Andrew was the guest masochist on Episode 141 of God Awful Movies; check it out! And if you'd like to have either of us as a guest on your show, drop us an email at openarguments@gmail.com. Show Notes & Links

1. From our grab bag:  here is a link to the Kobach memo that's PROBABLY NOT WORTH ARGUING; this is the New York Post report on the hilarious Make America Great Again bar lawsuit; and this is the link to all the gun control bills passed in Maryland.
2. We first discussed outgoing Federal Reserve Chair Janet Yellen's cease-and-desist order against Wells Fargo back in Episode 146.  The current enforcement action by the OCC can be read here.
3. We first discussed Trump's (then only proposed) Muslim ban way back in Episode #16, when the conventional wisdom was that it was so unthinkably awful it might lead the Republican Party to replace him at the top of the ticket.  Ah, good times.
4. Since then, we've discussed the legality of the ban again (in Episode 39), the 9th Circuit's ruling on EO-1 (in Episode 43), and, most recently, the status of OA-2 in Episode 114.  In this episode, we cite to the Government's reply brief before the Supreme Court.

Support us on Patreon at:  patreon.com/law Follow us on Twitter:  @Openargs Facebook:  https://www.facebook.com/openargs/ Don't forget the OA Facebook Community! And email us at openarguments@gmail.com