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  • FLSA Kansas

    In the automotive industry, are parts delivery, parts counter, parts inventory control and parts warehouse employees eligible for exempt status if they are placed on a monthly percentage bonus?

  • #2
    No, that's not enough. The duties tests must be met.
    http://www.dol.gov/esa/whd/regs/comp...a_overview.pdf
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    • #3
      Agreed, although sometimes this is a function of looking at the detail. I get real uncomfortable when someone tries to combine a bunch of unrelated positions into the same answer. Example, you said auto industry. What exactly do you mean by that. Do you mean an Auto Dealer? Or do you mean a manufacturer? I am going to include a cite from the Auto Dealer factsheet. I am not saying that this necessarily effects you, but this stuff is sometimes not as cut-and-dried as one thinks.

      Numerous exemptions exist which remove certain types of employees from specified requirements of the FLSA. Among those most commonly applicable to automobile dealerships is one which exempts certain sales and parts personnel, mechanics, and service writers from the overtime requirements. Another exempts certain managers and administrative employees from the minimum wage and overtime requirements.
      "Reality is that which, when you stop believing in it, doesn't go away".
      Philip K. **** (1928-1982)

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      • #4
        Originally posted by DAW View Post
        Agreed, although sometimes this is a function of looking at the detail. I get real uncomfortable when someone tries to combine a bunch of unrelated positions into the same answer. Example, you said auto industry. What exactly do you mean by that. Do you mean an Auto Dealer? Or do you mean a manufacturer? I am going to include a cite from the Auto Dealer factsheet. I am not saying that this necessarily effects you, but this stuff is sometimes not as cut-and-dried as one thinks.
        I am referring to an Auto Dealership and I also agree, it is not cut and dried as one thinks. From what I have learned it revloves around what the employee's actual job duties are. Thank you for your reply.

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        • #5
          The above responses are not entirely accurate, there are the below noted 13b10 exemption and the 7(i) exception…

          Section 213(b)(10) would exempt such employees.

          Finally, we reaffirm the position taken in the Administrator’s April 2, 1982 Opinion Letter that FLSA Section 13(b)(10), 29 U.S.C. 213(b)(10). Section 13(b)(10) exempts from the FLSA’s overtime requirements:
          any salesman, partsman, or mechanic primarily engaged in selling or servicing automobiles, trucks, or farm implements, if he is employed by a non-manufacturing establishment primarily engaged in the business of selling such vehicles or implements to ultimate purchasers.


          29 U.S.C. 213(b)(10)(A).


          Additionally, if the employee is employed by a car dealership, and the employer uses the 7(i) exception, any employee would be exempt if the particular test are met…
          Unlike Section 7(i), which exempts “any employee” of the establishment identified in that exemption, Section 13(b)(10) is both an employee-based and establishment-based exemption. Section 13(b)(10) is an employee-based exemption because three and only three categories of employees are exempt: salesmen, partsmen, and mechanics who are “primarily engaged in selling or servicing automobiles, trucks, or farm implements.” 29 U.S.C. 213(b)(10)(A). Section 13(b)(10) is an establishment-based exemption because employees of these three classes are exempt only if they are “employed by a non-manufacturing establishment primarily engaged in the business of selling such vehicles or implements to ultimate purchasers.” 29 U.S.C. 213(b)(10)(A).

          See Opinion Letter - dated March 17, 2003 - # FLSA2003-1
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