Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.
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.
ATTORNEY ADVERTISING
Top Class Actions is a Proud Member of the American Bar Association
LEGAL INFORMATION IS NOT LEGAL ADVICE
Top Class Actions Legal Statement
©2008 – 2024 Top Class Actions® LLC
Various Trademarks held by their respective owners
This website is not intended for viewing or usage by European Union citizens.
31 thoughts onWhat Rights Do Automotive Technicians Have as Flat Rate Workers?
I have seen our hourly pay or commissions go from 50% or more to 25% or less and it doesn’t matter how much they pay you per hour if they don’t pay you any hours.It’s the same as the creepy boss at the fast food joint that thinks he has the ability to tamper with the time clocks.
The current average gross profit margin on any skilled trade or professional service is 38.67% ranging from 29-45% and we have dealers openly bragging of 87% margins on service labor now.A competitive 36% margin is 72% over cost an 87% margin of 751% cost.Nobody is dictating or controlling their margins but somehow my hours and wages are being dictated.Wage fixing is criminal!”However, the court in Jindal clearly held that wage-fixing is a form of price fixing that the DOJ can prosecute as a criminal violation of the Sherman Act.”
Why don’t one of you top class tards show me where it is legal to force anyone to adhere to any third-party time books?Same as retail prices can only be suggested and even suggesting the wrong way can cross the line.The flat-rate system is supposed to be a competitive bidding process and all anyone is legally allowed to do is politely ask a technician what he or she is willing to perform the repairs for and either accept or decline their bids.Flat-rate time guides are for technician reference ONLY and used for unfamiliar operations while preparing their OWN bids.Anyone else using these GUIDES or forcing technicians adhere to them is making an agreement with a third-party to fix costs,prices or wages which is collusion and criminal.
There is not supposed to be any such thing as a 2 tenth repair,1 tenth must be added to every repair line for parts acquisition and 1 tenth for administrative duties(writing your story and flagging your time).You cannot even find the keys and the car in 12 minutes most the time.
These factories pull these times out their asses and it is a manageable risk for them.I have been paid 25% of C/P time on warranty and sometimes nothing at all.We have a right to an arbitration process with time disputes but service managers will flat out tell you that they no longer do them or they don’t even know what they are anymore.Everybody has forgotten that these repairs must be left open to competitive market forces and instead they dictate them wherever the feel.”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.”
There is no overtime in flat-rate because technicians are supposed to be able to account for such things in their OWN bids.Instead we are being forced to adhere to bids written by someone else that isn’t qualified and forced to work overtime without compensation.It’s so very corrupt now!
Any sick days,injuries,vacation and holiday pay are paid by your hourly rate and not by minimum wage!I just went through this with my corrupt Labor and Industries trying to tell me that all this employer had to do is offer me minimum wage eventhough he was billed for 64 hours at my rate of $40 an hour.He was required by law to produce any and all employer and time records which should include the invoices he did not so rather than he automatically default but the state says that he only defaults to minimum wage.He has not even paid the minimum wage.What he did was criminal fraud and wage theft!
You lawyers are corrupt af trying to say that aslong as I am paid at least minimum wage then anything goes in flat-rate.You are 100% wrong about that!The flat-rate system is supposed to be a competitive bidding process and all anyone is legally allowed to do is politely ask a technician what he or she are willing to perform the repair/s for and either accept or decline their bids.Flat-rate guides are for technician reference ONLY while preparing their OWN bids.Anyone else using them is making an agreement with a third-party to fix costs,prices or wages which is collusion and a felony.You are not even allowed to fix even one component of determining someone’s value
T5his minimum wage thing is a gimmick fraud too.I flagged 64 hours during one week and they employer paid me nothing and provided no time or employee records.I turned him into BOLI and BOLI tells me that he did nothing wrong and all he has to do is offer me minimum wage.IT’S BEYOND CORRUPT!”ALL PAY MUST BE STATED CLEARLY AND AGREED TO PRIOR TO WORK BEING PERFORMED”So if I am not go to be paid on anything they must tell me that I am not being paid before I do it and NOT FREAKING AFTERWARDS!If I am told to start work on a vehicle it is open ended or at least straight time unless they have a signed bid from me agreeing to do it for anything less before I start.SAME AS A FILTHY LAWYER.I dare anyone to walk into a lawyers office with a cooked up flat-rate book or tell a lawyer that all you have to pay them is minimum wage and it’s all legal.
I can show hard evidence of the car dealers and factories committing several different felonies just from a brief internet search but if I sneeze in public I have 5 different kinds of police on my ass.How do I file for asylum in Palestine?