Encino Motorcars, LLC v. Navarro

The Supreme Court held that FLSA exemptions should be given a 'fair reading' rather than construed narrowly, rejecting the long-standing principle that exemptions are read narrowly against employers.

Service advisors at car dealerships are exempt from FLSA overtime under 29 U.S.C. § 213(b)(10)(A). More significantly, the Court rejected the narrow-construction canon for FLSA exemptions.

Reshaped how courts analyze exemption disputes. Workers challenging exempt classification can no longer rely on a presumption in their favor — the statutory text controls.