Overtime fix for auto dealers passes Va. General Assembly

The Virginia General Assembly this month approved key overtime exemptions for the state’s auto dealers following an advocacy push by the Virginia Automobile Dealers Association.

The new Virginia Overtime Wage Act, which went into effect on July 1, allows workers to bring litigation for overtime claims in state court for alleged violations of federal labor law. One of the issues with the new Virginia law was that it didn’t include longstanding provisions that exist in federal law specifically exempting mechanics, sales, service and parts personnel from having to be paid overtime.

That led to potentially higher costs for dealers who have long been following federal wage and hour laws, and it led to the dealers having to reconfigure pay plans and employee hours.

After lobbying by the VADA, the updated budget bill that legislators approved this month included a measure that specifically exempts those sales, parts, and service employees from the new state law’s overtime requirements.

Other industries sought to include their exemptions, but auto dealers were the only ones who had their exemption restored. The new budget provides the auto industry-specific exemptions only until July 1, 2022. VADA plans to pursue legislation to make the changes permanent in next year’s General Assembly, so automobile dealer exemptions long enshrined in federal law are recognized by Virginia law.