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SUPREME COURT OF THE UNITED STATES
_________________
No. 16–1362
_________________
ENCINO MOTORCARS, LLC, PETITIONER
v.
HECTOR NAVARRO, et al.
on writ of certiorari to the united states
court of appeals for the ninth circuit
[April 2, 2018]
Justice Thomas delivered the opinion of the
Court.
The Fair Labor Standards Act (FLSA), 52Stat.
1060, as amended, 29 U. S. C. §201
et seq.,
requires employers to pay overtime compensation to covered
employees. The FLSA exempts from the overtime-pay requirement “any
salesman, partsman, or mechanic primarily engaged in selling or
servicing automobiles” at a covered dealership. §213(b)(10)(A). We
granted certiorari to decide whether this exemption applies to
service advisors—employees at car dealerships who consult with
customers about their servicing needs and sell them servicing
solutions. We conclude that service advisors are exempt.
I
A
Enacted in 1938, the FLSA requires employers
to pay overtime to covered employees who work more than 40 hours in
a week. 29 U. S. C. §207(a). But the FLSA exempts many
categories of employees from this requirement. See §213. Employees
at car dealerships have long been among those exempted.
Congress initially exempted all employees at car
dealerships from the overtime-pay requirement. See Fair Labor
Standards Amendments of 1961, §9, 75Stat. 73. Congress then
narrowed that exemption to cover “any salesman, partsman, or
mechanic primarily engaged in selling or servicing automobiles,
trailers, trucks, farm implements, or aircraft.” Fair Labor
Standards Amendments of 1966, §209, 80Stat. 836. In 1974, Congress
enacted the version of the exemption at issue here. It provides
that the FLSA’s overtime-pay requirement does not apply to “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.” §213(b)(10)(A).
This language has long been understood to cover
service advisors. Although the Department of Labor initially
interpreted it to exclude them, 35 Fed. Reg. 5896 (1970) (codified
at 29 CFR §779.372(c)(4) (1971)), the federal courts rejected that
view, see
Brennan v.
Deel Motors, Inc., 475
F. 2d 1095 (CA5 1973);
Brennan v.
North Bros. Ford,
Inc., 76 CCH LC ¶33, 247 (ED Mich. 1975), aff’d
sub nom. Dunlop v.
North Bros. Ford,
Inc., 529 F. 2d 524 (CA6 1976) (table). After these
decisions, the Department issued an opinion letter in 1978,
explaining that service advisors are exempt in most cases. See
Dept. of Labor, Wage & Hour Div., Opinion Letter No. 1520
(WH–467) (1978), [1978–1981 Transfer Binder] CCH Wages–Hours
Administrative Rulings ¶31,207. From 1978 to 2011, Congress made no
changes to the exemption, despite amending §213 nearly a dozen
times. The Department also continued to acquiesce in the view that
service advisors are exempt. See Dept. of Labor, Wage & Hour
Div., Field Operations Handbook, Insert No. 1757, 24L04(k) (Oct.
20, 1987), online at https://perma.cc/5GHD-KCJJ (as last visited
Mar. 28, 2018).
In 2011, however, the Department reversed
course. It issued a rule that interpreted “salesman” to exclude
service advisors. 76 Fed. Reg. 18832, 18859 (2011) (codified at 29
CFR §779.372(c)). That regulation prompted this litigation.
B
Petitioner Encino Motorcars, LLC, is a
Mercedes-Benz dealership in California. Respondents are current and
former service advisors for petitioner. Service advisors “interact
with customers and sell them services for their vehicles.”
Encino Motorcars, LLC v.
Navarro, 579 U. S. ___,
___ (2016) (
Encino I) (slip op., at 2). They “mee[t]
customers; liste[n] to their concerns about their cars; sugges[t]
repair and maintenance services; sel[l] new accessories or
replacement parts; recor[d] service orders; follo[w] up with
customers as the services are performed (for instance, if new
problems are discovered); and explai[n] the repair and maintenance
work when customers return for their vehicles.”
Ibid.
In 2012, respondents sued petitioner for
backpay. Relying on the Department’s 2011 regulation, respondents
alleged that petitioner had violated the FLSA by failing to pay
them overtime. Petitioner moved to dismiss, arguing that service
advisors are exempt under §213(b)(10)(A). The District Court agreed
with petitioner and dismissed the complaint, but the Court of
Appeals for the Ninth Circuit reversed. Finding the text ambiguous
and the legislative history “inconclusive,” the Ninth Circuit
deferred to the Department’s 2011 rule under
Chevron
U. S. A. Inc. v.
Natural Resources Defense
Council, Inc., 467 U. S. 837 (1984) .
Encino, 780
F. 3d 1267, 1275 (2015).
We granted certiorari and vacated the Ninth
Circuit’s judgment. We explained that courts cannot defer to the
2011 rule because it is procedurally defective. See
Encino
I, 579 U. S., at ___–___ (slip op., at 8–12).
Specifically, the regulation undermined significant reliance
interests in the automobile industry by changing the treatment of
service advisors without a sufficiently reasoned explanation.
Id., at ___ (slip op., at 10). But we did not decide
whether, without administrative deference, the exemption covers
service advisors.
Id., at ___ (slip op., at 12). We remanded
that issue for the Ninth Circuit to address in the first instance.
Ibid.
C
On remand, the Ninth Circuit again held that
the exemption does not include service advisors. The Court of
Appeals agreed that a service advisor is a “ ‘salesman’ ”
in a “generic sense,” 845 F. 3d 925
, 930 (2017), and is
“ ‘primarily engaged in . . . servicing
automobiles’ ” in a “general sense,”
id., at 931.
Nonetheless, it concluded that “Congress did not intend to exempt
service advisors.”
Id., at 929.
The Ninth Circuit began by noting that the
Department’s 1966–1967 Occupational Outlook Handbook listed 12 job
titles in the table of contents that could be found at a car
dealership, including “automobile mechanics,” “automobile parts
countermen,” “automobile salesmen,” and “automobile service
advisors.”
Id., at 930. Because the FLSA exemption listed
three of these positions, but not service advisors, the Ninth
Circuit concluded that service advisors are not exempt.
Ibid. The Ninth Circuit also determined that service
advisors are not primarily engaged in “servicing” automobiles,
which it defined to mean “only those who are actually occupied in
the repair and maintenance of cars.”
Id., at 931. And the
Ninth Circuit further concluded that the exemption does not cover
salesmen who are primarily engaged in servicing.
Id., at
933. In reaching this conclusion, the Ninth Circuit invoked the
distributive canon. See A. Scalia & B. Garner, Reading Law 214
(2012) (“Distributive phrasing applies each expression to its
appropriate referent”). It reasoned that “Congress intended the
gerunds—selling and servicing—to be distributed to their
appropriate subjects—salesman, partsman, and mechanic. A salesman
sells; a partsman services; and a mechanic services.”
Id.,
at 934. Finally, the Court of Appeals noted that its interpretation
was supported by the principle that exemptions to the FLSA should
be construed narrowly,
id., at 935, and the lack of any
“mention of service advisors” in the legislative history,
id., at 939.
We granted certiorari, 582 U. S. ___
(2017), and now reverse.
II
The FLSA exempts from its overtime-pay
requirement “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.” §213(b)(10)(A). The parties agree that
petitioner is a “nonmanufacturing establishment primarily engaged
in the business of selling [automobiles] to ultimate purchasers.”
The parties also agree that a service advisor is not a “partsman”
or “mechanic,” and that a service advisor is not “primarily engaged
. . . in selling automobiles.” The question, then, is
whether service advisors are “salesm[e]n . . . primarily
engaged in . . . servicing automobiles.” We conclude that
they are. Under the best reading of the text, service advisors are
“salesm[e]n,” and they are “primarily engaged in . . .
servicing automobiles.” The distributive canon, the practice of
construing FLSA exemptions narrowly, and the legislative history do
not persuade us otherwise.
A
A service advisor is obviously a “salesman.”
The term “salesman” is not defined in the statute, so “we give the
term its ordinary meaning.”
Taniguchi v.
Kan Pacific
Saipan, Ltd., 566 U. S. 560, 566 (2012) . The ordinary
meaning of “salesman” is someone who sells goods or services. See
14 Oxford English Dictionary 391 (2d ed. 1989) (“[a] man whose
business it is to sell goods or conduct sales”); Random House
Dictionary of the English Language 1262 (1966) (“a man who sells
goods, services, etc.”). Service advisors do precisely that. As
this Court previously explained, service advisors “sell [customers]
services for their vehicles.”
Encino I, 579 U. S., at
___ (slip op., at 2).
B
Service advisors are also “primarily engaged
in . . . servicing automobiles.” §213(b)(10)(A). The word
“servicing” in this context can mean either “the action of
maintaining or repairing a motor vehicle” or “[t]he action of
providing a service.” 15 Oxford English Dictionary, at 39; see also
Random House Dictionary of the English Language, at 1304 (“to make
fit for use; repair; restore to condition for service”). Service
advisors satisfy both definitions. Service advisors are integral to
the servicing process. They “mee[t] customers; liste[n] to their
concerns about their cars; sugges[t] repair and maintenance
services; sel[l] new accessories or replacement parts; recor[d]
service orders; follo[w] up with customers as the services are
performed (for instance, if new problems are discovered); and
explai[n] the repair and maintenance work when customers return for
their vehicles.”
Encino I,
supra, at ___ (slip op.,
at 2). If you ask the average customer who services his car, the
primary, and perhaps only, person he is likely to identify is his
service advisor.
True, service advisors do not spend most of
their time physically repairing automobiles. But the statutory
language is not so constrained. All agree that partsmen, for
example, are “primarily engaged in . . . servicing
automobiles.” Brief for Petitioner 40; Brief for Respondents 41–44.
But partsmen, like service advisors, do not spend most of their
time under the hood. Instead, they “obtain the vehicle parts
. . . and provide those parts to the mechanics.”
Encino I, supra, at ___ (slip op., at 2); see also 1 Dept.
of Labor, Dictionary of Occupational Titles 33 (3d ed. 1965)
(defining “partsman” as someone who “[p]urchases, stores, and
issues spare parts for automotive and industrial equipment”). In
other words, the phrase “primarily engaged in . . .
servicing automobiles” must include some individuals who do not
physically repair automobiles themselves but who are integrally
involved in the servicing process. That description applies to
partsmen and service advisors alike.
C
The Ninth Circuit concluded that service
advisors are not covered because the exemption simply does not
apply to “salesm[e]n . . . primarily engaged in
. . . servicing automobiles.” The Ninth Circuit invoked
the distributive canon to reach this conclusion. Using that canon,
it matched “salesman” with “selling” and “partsma[n] [and]
mechanic” with “servicing.” We reject this reasoning.
The text of the exemption covers “any salesman,
partsman, or mechanic primarily engaged in selling or servicing
automobiles, trucks, or farm implements.” §213(b)(10)(A). The
exemption uses the word “or” to connect all of its nouns and
gerunds, and “or” is “almost always disjunctive.”
United
States v.
Woods, 571 U. S. 31, 45 (2013) . Thus,
the use of “or” to join “selling” and “servicing” suggests that the
exemption covers a salesman primarily engaged in either
activity.
Unsurprisingly, statutory context can overcome
the ordinary, disjunctive meaning of “or.” The distributive canon,
for example, recognizes that sometimes “[w]here a sentence contains
several antecedents and several consequents,” courts should “read
them distributively and apply the words to the subjects which, by
context, they seem most properly to relate.” 2A N. Singer & S.
Singer, Sutherland Statutes and Statutory Construction §47:26,
p. 448 (rev. 7th ed. 2014).
But here, context favors the ordinary
disjunctive meaning of “or” for at least three reasons. First, the
distributive canon has the most force when the statute allows for
one-to-one matching. But here, the distributive canon would mix and
match some of three nouns—“salesman, partsman, or mechanic”—with
one of two gerunds—“selling or servicing.” §213(b)(10)(A). We doubt
that a legislative drafter would leave it to the reader to figure
out the precise combinations. Second, the distributive canon has
the most force when an ordinary, disjunctive reading is
linguistically impossible. Cf.,
e.g., Huidekoper’s Lessee v.
Douglass, 3 Cranch 1, 67 (1805) (Marshall, C. J.)
(applying the distributive canon when a purely disjunctive reading
“would involve a contradiction in terms”). But as explained above,
the phrase “salesman . . . primarily engaged in
. . . servicing automobiles” not only makes sense; it is
an apt description of a service advisor. Third, a narrow
distributive phrasing is an unnatural fit here because the entire
exemption bespeaks breadth. It begins with the word “any.” See
Ali v.
Federal Bureau of Prisons, 552
U. S. 214, 219 (2008) (noting the “expansive meaning” of
“any”). And it uses the disjunctive word “or” three times. In fact,
all agree that the third list in the exemption—“automobiles,
trucks, or farm implements”—modifies every other noun and gerund.
But it would be odd to read the exemption as starting with a
distributive phrasing and then, halfway through and without
warning, switching to a disjunctive phrasing—all the while using
the same word (“or”) to signal both meanings. See
Brown v.
Gardner, 513 U. S. 115, 118 (1994) (noting the
“vigorous” presumption that, “when a term is repeated within a
given sentence,” it “is used to mean the same thing”). The more
natural reading is that the exemption covers any combination of its
nouns, gerunds, and objects.
D
The Ninth Circuit also invoked the principle
that exemptions to the FLSA should be construed narrowly. 845
F. 3d, at 935–936. We reject this principle as a useful
guidepost for interpreting the FLSA. Because the FLSA gives no
“textual indication” that its exemptions should be construed
narrowly, “there is no reason to give [them] anything other than a
fair (rather than a ‘narrow’) interpretation.” Scalia, Reading Law,
at 363. The narrow-construction principle relies on the flawed
premise that the FLSA “ ‘pursues’ ” its remedial purpose
“ ‘at all costs.’ ”
American Express Co. v.
Italian Colors Restaurant, 570 U. S. 228, 234 (2013)
(quoting
Rodriguez v.
United States, 480 U. S.
522 –526 (1987) (
per curiam)); see also
Henson v.
Santander Consumer USA Inc., 582 U. S. ___, ___ (2017)
(slip op., at 9) (“[I]t is quite mistaken to assume . . .
that whatever might appear to further the statute’s primary
objective must be the law” (internal quotation marks and
alterations omitted)). But the FLSA has over two dozen exemptions
in §213(b) alone, including the one at issue here. Those exemptions
are as much a part of the FLSA’s purpose as the overtime-pay
requirement. See
id., at ___ (slip op., at 9) (“Legislation
is, after all, the art of compromise, the limitations expressed in
statutory terms often the price of passage”). We thus have no
license to give the exemption anything but a fair reading.
E
Finally, the Ninth Circuit relied on two
extraneous sources to support its interpretation: the Department’s
1966–1967 Occupational Outlook Handbook and the FLSA’s legislative
history. We find neither persuasive.
1
The Ninth Circuit first relied on the
Department’s 1966–1967 Occupational Outlook Handbook. It identified
12 jobs from the Handbook’s table of contents that it thought could
be found at automobile dealerships. See 845 F. 3d, at 930. The
Ninth Circuit then stressed that the exemption aligns with three of
those job titles—“[a]utomobile mechanics,” “[a]utomobile parts
countermen,” and “[a]utomobile salesmen”—but not “[a]utomobile
service advisors.”
Ibid.
The Ninth Circuit cited nothing, however,
suggesting that the exemption was meant to align with the job
titles listed in the Handbook. To the contrary, the exemption
applies to “any salesman . . . primarily engaged in
selling or servicing automobiles.” It is not limited, like the term
in the Handbook, to “automobile salesmen.” And the ordinary meaning
of “salesman” plainly includes service advisors.
2
The Ninth Circuit also relied on legislative
history to support its interpretation. See
id., at 936–939.
Specifi- cally, it noted that the legislative history discusses
“automobile salesmen, partsmen, and mechanics” but never discusses
service advisors.
Id., at 939. Although the Ninth Circuit
had previously found that same legislative history “inconclusive,”
Encino, 780 F. 3d, at 1275, on remand it was “firmly
persuaded” that the legislative history demonstrated Congress’
desire to exclude service advisors, 845 F. 3d, at 939.
The Ninth Circuit was right the first time. As
we have explained, the best reading of the statute is that service
advisors are exempt. Even for those Members of this Court who
consider legislative history, silence in the legislative history,
“no matter how ‘clanging,’ ” cannot defeat the better reading
of the text and statutory context.
Sedima, S. P. R. L. v.
Imrex Co., 473 U. S. 479 , n. 13 (1985). If the
text is clear, it needs no repetition in the legislative history;
and if the text is ambiguous, silence in the legislative history
cannot lend any clarity. See
Avco Corp. v.
Department of
Justice, 884 F. 2d 621, 625 (CADC 1989). Even if Congress
did not foresee all of the applications of the statute, that is no
reason not to give the statutory text a fair reading. See
Union
Bank v.
Wolas, 502 U. S. 151, 158 (1991) .
* * *
In sum, we conclude 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).
Accordingly, we reverse the judgment of the Court of Appeals and
remand the case for further proceedings consistent with this
opinion.
It is so ordered.
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