U.S. Court of Appeals for the Ninth Circuit
The NFIB Legal Foundation joined with the National Automobile Dealers Association when it challenged a district court ruling that finance and insurance (F&I) employees are disqualified from the section 7(i) exemption to the Fair Labor Standards Act overtime requirements. In the past, the U.S. Department of Labor’s regulatory guidance and opinion letters interpreted the exemption as applying to any commissioned employee who works for a retail establishment, regardless of the goods or services they sell. The district court, however, concluded that finance and insurance employees are disqualified because they do not sell retail goods. NFIB membership includes 6,100 retailers of new and used cars, boats and recreational vehicles, many who employ F&I employees. NFIB argued that F&I employees are extremely well-compensated through commissions and are not entitled to overtime. NFIB also emphasized DOL’s consistent guidance in classifying F&I employees as exempt under section 7(i).
Status: DECIDED. The Ninth Circuit Court of Appeals heard oral argument in the Gieg and Wickersham cases Nov. 4, 2004 in Portland, Ore.
May 18, 2005 the court ruled that no overtime has to be paid to finance employees.
