What Rights Do Automotive Technicians Have as Flat Rate Workers? 

Automotive technicians may generally be flat rate employees, but they are still protected by workers’ rights laws and California labor laws.

What is a Flat Rate Employee?

A flat rate employee is someone who is paid per job rather than a salary or an hourly rate. The flat rate system is meant to motivate employees to finish more jobs in a shorter amount of time in order to maximize their pay, but may unintentionally mean that quality is sacrificed for the sake of quantity, since quantity is what is rewarded under this system.

Automotive technicians are often paid a flat rate fee, while others are paid with a automotive technicians salary or an hourly rate, or even time billed.

A flat rate employee gets a predetermined percentage of each flat rate job they complete.

While the flat rate system is relatively non-traditional, these employees are still workers who are protected by labor laws, like any other non-exempt employee. For instance, even when being paid a flat rate fee, automotive technicians should still be receiving at least minimum wage, even if minimum wage for the time spent would be over what the flat rate pay is.

California flat rate employees are protected by the laws set forth in California’s Industrial Welfare Commission.

When Does a Flat Rate Employee Receive Overtime Pay?

It may seem that being paid a flat rate would eliminate a worker from overtime pay eligibility for extra hours worked. But in fact, like all non-exempt employees, flat rate workers are entitled to be paid an overtime premium if they work in excess of eight hours in one day or more than 40 hours in a week.

On the opposite end of the scale, if a worker comes in to work but there is no work to be had, they are entitled to at least one-half day’s pay.

Should Automotive Technicians Receive Breaks as Flat Rate Workers?

Another major aspect of California labor law is meal and rest breaks—and yes, flat rate workers are entitled to these breaks as well, just like all other non-exempt employees.

Breaking it down, if an employee works five hours or more in a day, they must be provided at least one 30-minute unpaid meal break, about halfway through their shift. Sometimes, in the context of an auto repair shop, it may be tempting for an employer to have their workers stay in the shop on their break “just in case” something comes up. But this is illegal under labor laws—an employer cannot require any job-related duties during the required unpaid meal break.

However, the meal break can be waived if the employee works up to six hours in a day, and no more, if the employer and employee mutually agree without coercion. If the employee works at least six hours, however, the meal break is required and cannot be waived.

On top of meal breaks, flat rate employees are also entitled to at least one 10-minute rest break for every four hours of work, approximately halfway between each four-hour period. These rest breaks must be paid, but the employer cannot legally require the employee to perform any job duties during their breaks.

Does the Pay Change if Automotive Technicians Are Required to Bring Their Own Tools?

Under normal circumstances, an auto shop must provide all tools, equipment, and uniforms that their automotive technicians use to perform their work. However, an employer can require than employee provide their own tools, as long as the employer pays them at least twice the minimum wage per hour.

Examples of Flat Rate Worker Violations

There are several common examples of labor law violations against flat rate workers. These include failure to pay overtime, failure to pay at least minimum wage for redone work, failure to pay for time spent waiting for a vehicle to repair, failure to pay twice minimum wage when required to bring their own tools, and more.

A Dealership’s Point of View

One Toyota dealership’s assistant manager told Monster.com that managers often view hourly paid automotive technicians as less productive workers because they have no incentive to perform a job quickly. Asking to remain anonymous because his views did not reflect those of the manufacturer, the assistant manager said flat rate employees can make a lot of money when they are allowed to fit in a lot of different repairs.

However, if work is slow, the techs will not be able to make much money at all with the flat rate pay.

The Toyota assistant manager added that work completed by any flat-rate employee is always checked to ensure it’s been done thoroughly and properly, albeit quickly. If a worker does repairs that need to be redone by further visits from the vehicle’s owner, then that worker can lose his job at the dealership, said the assistant manager.

When a new vehicle that is still covered by a new vehicle warranty needs repairs, most auto repair shops refer to the manufacturer’s estimated repair time, which is usually a fairly tight window. Because of this, the Toyota assistant manager said a flat rate worker could realize compensation is up to one-third less than was expected.

Jon DiGuiseppi, who manages Green’s Farms Shell Service Center on the East Coast, told Monster that he understands fast and accurate mechanics may feel they have the opportunity to make more money on a flat rate, but that many employees like the predictability of earning an hourly rate of pay.

How to File a Worker’s Right Violation Lawsuit

In California, mandatory arbitration is no longer the law for employee contracts. If you are a California flat rate employee and believe your workers’ rights may have been violated, you may be able to file a lawsuit and pursue compensation.

Filing a lawsuit can be a daunting prospect, so Top Class Actions has laid the groundwork for you by connecting you with an experienced attorney. Consulting an attorney can help you determine if you have a claim, navigate the complexities of litigation, and maximize your potential compensation.

Join a Free California Wage & Hour Class Action Lawsuit Investigation

If you were forced to work off the clock or without overtime pay within the past 3 years in California, you have rights – and you don’t have to take on the company alone.

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