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Posts: 5
Location:
phila pa
Registered:
May 2008
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flat rate and overtime
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Fri, 06 November 2009 21:56
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have there been any instances where techs complained about overtime while on flat rate?
Has anyone ever successfully resolved this issue?
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Posts: 60
Location:
atlanta ga
Registered:
August 2009
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Re: flat rate and overtime
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Sat, 07 November 2009 01:20
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overime  most techs i know barely able to work 40hrs a week when its busy.nobody has given me reason to work over 40 hrs in quite awhile.to tell the truth i have never heard a tech even mention it when they have had to work over 40. i have never thought of it .even if you did maneger would just hire another tech this probably why it's never brought up.
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Posts: 350
Location:
NorCal
Registered:
March 2006
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Re: flat rate and overtime
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Sat, 07 November 2009 04:32
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I was working 50-60 hours a week on flat rate and never got overtime, they told me since I was flat rate I was exempt from overtime laws.
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Posts: 3873
Location:
Missoura
Registered:
January 2005
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Re: flat rate and overtime
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Sat, 07 November 2009 05:34
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| fourty-two wrote on Sat, 07 November 2009 04:32 |
they told me since I was flat rate I was exempt from overtime laws.
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That is true. Under the FLSA law the exemption is only
applicable to businesses whose primary function is vehicle repair. However, under a separate FLSA exemption, employers in the service industries (such as collision repair shops) do not have to pay overtime for employees who are compensated on a commission basis. Flat rate is considered a commission.
Remember the case involving Sterling? The court was asked to consider whether technicians compensated on a flat rate basis
should be considered to be paid on a comission basis and exempt from overtime. In finding that flat rate is a form of commission payment, the court noted that, when an employee is paid commission, the employee receives a percentage of the sale price. The Court noted that flat-rate compensation systems, by which technicians receive a set rate for each huor bookd, is just another version of a commission, in that the employee is ultimately receiving a percentage of the amount charged to the customer regaurdless of the actual number of hours worked. Many non-dealer repair shops have long used flat rate systems to compensate the technician, often without paying overtime. While the labor dept has not aggressively policed this practice,those shops have been at risk for claims of unpaid overtime.
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Posts: 350
Location:
NorCal
Registered:
March 2006
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Re: flat rate and overtime
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Sat, 07 November 2009 08:56
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would that exempt you from punching a clock too? That was the only place I've ever worked without a timeclock.
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Posts: 3873
Location:
Missoura
Registered:
January 2005
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Re: flat rate and overtime
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Sat, 07 November 2009 13:30
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| fourty-two wrote on Sat, 07 November 2009 08:56 |
would that exempt you from punching a clock too? That was the only place I've ever worked without a timeclock.
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Punching in and out on a time clock is more for your employers insurance purposes and your benefits than anything else.
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Posts: 429
Location:
il
Registered:
November 2007
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Re: flat rate and overtime
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Sat, 07 November 2009 16:00
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I make double time, all the time anyway. 
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Posts: 2780
Location:
Pelham, AL
Registered:
September 2004
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Re: flat rate and overtime
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Mon, 09 November 2009 16:41
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| fourty-two wrote on Sat, 07 November 2009 04:32 |
I was working 50-60 hours a week on flat rate and never got overtime, they told me since I was flat rate I was exempt from overtime laws.
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They'd be wrong in Alabama.......and I'd check with the state labor department. Body shop owners lie often.
I'd ask for a time card if you don't already have one.
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Posts: 3873
Location:
Missoura
Registered:
January 2005
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Posts: 350
Location:
NorCal
Registered:
March 2006
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Re: flat rate and overtime
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Wed, 11 November 2009 02:18
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| Quote: |
fourty-two wrote on Sat, 07 November 2009 04:32
I was working 50-60 hours a week on flat rate and never got overtime, they told me since I was flat rate I was exempt from overtime laws.
They'd be wrong in Alabama.......and I'd check with the state labor department. Body shop owners lie often. Laughing
I'd ask for a time card if you don't already have one.
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quit a few weeks ago, so it doesn't matter. They brought on extra help when it was dead ass slow so everyone was there full time for half a check. Time to move on.
I've heard it both ways, but have never seen anyone paid overtime if they were flat rate so regardless of the laws thats how it seems to work in the this area.
Thats probably the worst part of the flat rate trap, having to stand around for free and hope for some work, at least hourly you get to go home when theres no work.
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Posts: 576
Location:
VIRGINIA
Registered:
October 2007
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Re: flat rate and overtime
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Wed, 11 November 2009 16:59
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BUCK i feel your pain.
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