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Overtime exemption question - Pennsylvania

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  • Overtime exemption question - Pennsylvania

    Greetings, some background....

    Job type - Auto salvage yard worker primarily engaged in parts removal, warehouse and storage, some delivery work.
    Time on job - 2 years 7 months
    Wage type - Hourly
    Average weekly hours - 42 to 46 with a weekly pay period


    Automotive salvage yard engaged in the business of selling used parts with a side section of selling repairable vehicles (less than 25% of business). Overtime was paid without question up until a few weeks ago when they went to regular time regardless of hours worked. This took place without notice. Owner refuses to reinstate overtime and simply says the business is exempt. Only notice posted in employee common area cites an exemption under vehicle sales section. Any help is appreciated!

  • #2
    I can't think of any DOL WHD OT exemption that would apply.

    Ask your employer what exemption he is citing and if he refuses file a claim with the US Department of Labor wage & hour division.

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    • #3
      The business could be exempt if it does less than $500k in gross sales and the employees do NO interstate business even if gross sales are less than $500k(which is hard due to phone/internet etc)....it is rare that a business would not be covered. So that's the first thing to look at.

      Second thing to consider is the following based on the specific job position and duties-- Read through this and see if it applies:
      "FLSA Exemptions For Certain Positions at Automobile Dealerships -- http://www.bairdquinn.com/Auto-Dealership-Employees

      Most basic hourly positions at automobile dealerships are covered by the FLSA – subject to certain exemptions. The automobile dealer specific exemption cited most frequently applies to sales and parts personnel, mechanics and service writers. This provision provides an exemption only from the overtime pay requirements under the FLSA.

      For purposes of this exemption, salesmen are defined as employees who spend more than fifty percent of their spent making sales or obtaining orders or contracts for the sale of automobiles. Incidental duties, such as making deliveries or performing collections, is included within the definition. Partsmen are defined as employees who spend over fifty percent of their time requisitioning, as well as stocking and dispensing automobile parts. Mechanics are defined as employees that spend over fifty percent of their time performing mechanical repairs or work to automobiles. Non-mechanical repairs or work such as washing, cleaning, painting, polishing, tire changing, installing seat covers, lubricating or dispatching are not considered “mechanical repairs” for purposes of this definition.

      It should be emphasized that this exemption only applies to the overtime pay requirements under the FLSA; it does not excuse an automobile dealership from paying employees the minimum wage for each hour worked."


      I suspect he is referencing and clarifying https://www.dol.gov/whd/regs/compliance/whdfs11.pdf

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      • #4
        I ignored that exemption because the OP didn't say he was working for a auto dealer but a scrap yard only doing 25% auto sales.

        And I always forget about the $500K and no interstate trade because I just don't see it, ever.

        A quick search other exemptions under the Pennsylvania overtime law include: seamen, salesmen or mechanics in the automobile, truck, or aircraft industries, taxicab drivers, employees of movie theaters among others.

        Now this leaves two questions.

        Would the state of PA consider you a mechanic? That would will need to find out from them.
        Last edited by Payroll Guy; 06-15-2017, 10:29 AM.

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        • #5
          Agreed with the other answers. Also, those are federal rules. In addition to the federal rules, we have PA state rules. You might want to give them a call.
          "Reality is that which, when you stop believing in it, doesn't go away".
          Philip K. **** (1928-1982)

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          • #6
            Originally posted by Payroll Guy View Post

            Would the state of PA consider you a mechanic? That would will need to find out from them.
            My guess would be no as I'm not, what I think, the definition of a mechanic. More of a warehouse/shipping kind of guy. This is strictly auto wrecking.

            The business would fall under the $500k mark in recent years but we do a fairly brisk business of shipping engines and transmissions out of state.

            They seem to be citing regs that apply to car dealerships, which while we do sell a vehicle or two a month, we're licensed as a "salvage" yard.

            Thanks all, I'll try and keep you posted.

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