Automotive Wage Compliance In The Dealership: Minimum Wage Law


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Automotive Wage Compliance In The Dealership: Minimum Wage Law Does Apply December 2007, Auto Dealer Today - WebXclusive by Justin Spath - Also by this author Like 32

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Recent government reports show that wage and hour charges and litigation are rapidly increasing, even outpacing discrimination and harassment charges. Unfortunately, automotive dealerships, with the wide variety of jobs and pay plans, are a perfect place for these kinds of charges to develop. Staying compliant with wage and hour laws can seem daunting, but it can be handled with a little understanding and some good record keeping. Two major areas where many dealerships can find themselves in trouble under the Fair Labor Standards Act (FLSA) are minimum wage and overtime. The FLSA is the federal law that details standards for the basic minimum wage and overtime pay. It covers employers who have at least $500,000 per year in gross sales and/or whose employees are regularly involved in interstate commerce. Some of you may have just read that last sentence and thought, "Well, this doesn't apply to me. I don't need to worry about this." However, you do need to worry, maybe more so than those who do qualify. Those of you who do not meet these criteria, go ahead and follow the rules set forth anyway for two reasons. First, if you do not meet the sales requirement, you probably want to grow your business and someday exceed $500,000 in gross sales. By following these rules before you reach that mark, you will not have to make the switch down the road, eliminating the possibility of problems when you do reach the sales threshold. Second, even if you only sell one vehicle to someone out of your state, you are now a participant in interstate commerce. Since you cannot know where all of your customers are coming from, it is better to plan ahead and comply with the FLSA compliance now, rather than after it is too late. The rules for paying minimum wage and overtime under the FLSA are actually very simple. As of July 24, 2007, the federal minimum wage was increased to $5.85 per hour, with additional 70-cent increases scheduled in 2008 and 2009. This means all of your employees must be paid at least $5.85 per hour. The overtime provision of the FLSA states that any hours worked in excess of 40 hours per week must be paid at one-and-one-half times the regular pay rate. Therefore, employees that make minimum wage should receive $8.78 per hour for any hours worked in excess of 40 hours in one week. Sure that’s simple and straightforward, but there are other issues to consider. The issues resulting from the above rules are rarely brought to the attention of the Department of Labor (DOL). The problems usually stem from the dozens of exceptions to these rules that allow a company to classify certain jobs as "exempt" from the rules. Failure to properly classify your employees as exempt or non-exempt can result in DOL audits, lawsuits and civil fines. To avoid these things from happening at your dealership, you should know the exemptions that you will likely be taking advantage of. Despite the dozens of exemptions to the provisions of the FLSA, only seven are commonly used in an automotive dealership, and all seven are exemptions to the overtime statutes rather than minimum wage. This means that the FLSA rules of one-and-one-half times the regular pay rate for hours worked in excess of 40 hours do not apply. Four of these exemptions: executive, administrative, professional and computer-related are used by almost all businesses. The other three: automotive sales, parts personnel and mechanics are specific to the retail automotive industry. Each of these exemptions has specific tests to pass in order to qualify. Below is a review of each of the exemptions. Once you are familiar with the specific qualifications, you should review the positions you are currently considering exempt from the overtime provisions to make sure they truly are exempt. This exemption is probably only common in the largest dealerships and, as stated above, would include computer programmers and software developers. These four exemptions are common across all industries and are the most familiar to people when they hear the phrase "exempt status." It's important to note that for any of these exemptions, the individual employee must meet all of the testing standards. You will not be compliant if they only meet some of the requirements. The exemptions specific to automotive dealerships (automotive sales, parts personnel, and mechanics) do not have detailed tests, as the others do, but they do have specific definitions. For an employee to be classified as exempt to the overtime provisions of the FLSA under the Automotive Sales exemption, they must be "an employee who is employed for the purpose and is primarily engaged in making sales or obtaining orders or contracts for sale of vehicles." Additionally, at least 50 percent of their compensation must come from a commissioned sales program. Almost all automotive salespeople will qualify for this exemption. The second automotive dealership specific overtime exemption is for Parts Personnel. Employees who qualify for this exemption are defined as "any employee employed for the purpose of and primarily engaged in requisitioning, stocking and dispensing parts." This is a very simple definition that should encompass almost all parts personnel. The final exemption specific to automotive dealerships, Mechanics, is defined as "any employee engaged in doing mechanical work in the servicing of an automobile, trailer, truck..." This definition goes on to state that it does not apply to employees who primarily perform work such as washing, cleaning, tire changing or lubrication; therefore lube technicians and detail staff would not be covered under this exemption. Basically, only your fully-trained automotive technicians qualify under this exemption. Also note that the FLSA specifically describes a group of employees in automotive dealerships that do not qualify for overtime exemptions. The law states, “Employees variously described as … service writer, service advisor or service salesman … are not exempt.” This is probably one of the most common exemption mistakes made in an automotive dealership. Having now defined the overtime exemptions under the FLSA that would apply to your dealership, you need to know why these specifically need to be reviewed. The DOL does not have any problem with you choosing not to classify an employee as exempt from the overtime statutes. They would be perfectly happy if you wanted to pay everyone an hourly rate— including overtime pay. What the DOL does have a problem with is if you incorrectly classify someone as exempt when they should not be. This situation would cause the employee to be underpaid based on the law. Your dealership would then be in violation of the FLSA and would subsequently be investigated by the DOL to some degree. The most common outcome of such an investigation would be your dealership having to provide back pay to the employee in question as well as paying a civil fine, often 2-3 times the amount owed to the employee or more. The worst-case scenario for your dealership would be for the DOL to choose to audit your entire payroll, usually for the past three years, and issue a determination against your pay practices for all employees. Obviously, this is likely to locate other discrepancies because if you have one, you probably have more, which would result in additional fines. This is the outcome of a government investigation only. You could possibly be setting yourself up for litigation from the employee and all the associated costs. No business wants to deal with these issues, especially when are easily avoided by reviewing the tests for the exemptions and making sure the employees you have classified as exempt really are. While there are minimum wage exemptions that an automotive dealership might be able to take advantage of, it’s not usually in the dealerships best interest to use them for two reasons: One, because the administrative work and record keeping necessary to qualify for these exemptions are typically not worth the effort; and two, it is practically impossible to find good employees when you are paying less than minimum wage. There are, however, other things to consider when dealing with minimum wage. Specifically, the fact that all employees must receive at least minimum wage at all times. For your hourly and salaried positions, this is hardly ever an issue. They typically have a set number of hours per week and receive the same pay throughout. Where minimum wage issues can surface is in your salespeople and service technicians. Salespeople and service technicians are rarely paid on an hourly basis, and their wages fluctuate, sometimes significantly, depending on the work they perform. Management at the dealership often fails to keep track of the hours that salespeople and service technicians work. These factors combine to create a situation where compliance is often ignored. For example, if you have a salesperson that works eight hours a day, six days a week and only makes one sale resulting in $400 of commission for the two-week pay period. You pay him his $400 and believe there isn’t an issue because you paid him what he earned. Actually, this is a compliance issue regarding minimum wage regulations. Minimum wage provisions would dictate since he worked 96 hours in that pay period, he should receive $561.60. Therefore, as the employer, you would be responsible for making up the difference between his commission wage and the minimum wage. You can also see how this could occur if a service technician were earning book rate for his work, but for some reason the repairs took far longer that the book time period listed. Minimum wage charges are among the easiest to avoid by simply keeping track of the hours worked by employees who are not paid based on a regular rate. Have your sales and service staff clock in and out each day. Then, when the pay period ends, determine the average hourly wage. If it is below the minimum wage rate, adjust it accordingly to comply. It would be a good idea to briefly mention that all the aforementioned information is related to federal laws only. Each state has their own individual rules regarding overtime and minimum wages. While most are very similar to the federal regulations, differences are out there. It’s highly recommend that you contact your state’s Department of Labor for information on the laws applicable in your area. Take some time to review your own pay practices, and determine if you are in compliance with the Fair Labor Standards Act. By addressing overtime exemptions and minimum wage standards proactively, you can avoid the vast majority of compensation-related charges and litigation, saving your dealership both time and money. Vol 4, Issue 11 Tags: BDC

Comment 1. 1. Monique M. [ November 04, 2011 @ 04:01PM ] I have a question regarding the Ghent Cheverolet dealership in Greeley, Colorado. The lube technicians do not get paid overtime when they work more than 40 hours a week. After reading this my understanding is that lube techs should be getting paid overtime, correct? 2. 2. Howard Michaels [ January 19, 2013 @ 01:19PM ] Weekly check, 300.00 marked for a week of pay at 52 hours per week which calculates at 5.76923.07 and the 1200.00 is taken back if your commission sales total more than 1200.00 a month. If I read this artical corre4ctly the minimal wage should be 7.25 an hour. I can the benefit to both sides. This is my real question. If you have an article that address's this issue. I would be happy to read it. The dealership is proposing that wif each individual sales staff member does not sell 12 cars in a given month then there single day off is eliminated and the work week now becomes a 6 day work week. Do they need to adjust the pay structure. And what about if the same applies to a salaried sales consultant who has compensation because they are working lets say the internet department with a reduced commission paid basis. And what are the current labor laws regarding the work week laws regarding a 5 dya work week vs a 6 day work week. And working on an average of 10.4 hours per day? Hope you can shed some light or direct us to where we can get the answers. We are in the State of Kentucky. E-mails can be directed to me at: [email protected] 3. 3. CHARLEY G. [ January 21, 2013 @ 02:03PM ] HOWARD,I READ YOUR POST.SOUNDS LIKE YOUR SITUATION AND PAY PLAN IS CLOSE TO OURS.WE RECIEVE A DRAW TWICE A MONTH WE GET 600.00 MINUS TAXES AND INS.FOR A TOTAL OF 1200.00.IF WE DO NOT SELL ENOUGH DURING THE MONTH TO REPAY THE 1200.00 IT WILL BE DEDUCTED THE NEXT MONTH.DONT KNOW IF THATS LEGAL, BUT THATS THE WAY IT IS. 4. 4. Servman [ February 07, 2013 @ 10:18AM ] Correct you should be getting overtime pay. Regardless to the fact that they have declared you a flat rate mechanic. 5. 5. NPL [ May 09, 2013 @ 05:23AM ] I am new to the car sales business and take a minimum 'draw' of only $1,600 a month ($800 gross x 2 ). I work more than 85 hours per week in a state where minimum wage is $7.80/hr. I clock-in/clock-out every day. Based on this article, I am way underpaid. What is the best way for me to approach solving the problem and getting my back pay (at minimum wage), without just being fired for bringing up this issue? 6. 6. sir loin [ July 29, 2013 @ 06:27PM ] I work for one of the Lia car dealerships in Northampton, and we are paid less the the minimum hourly wage - $8/hr. - and we are not paid overtime though our schedule includes manditory overtime. They pay off city officials and "drive out" problem customers/employees. I don't like to think of how they treat the females once they plan on firing them: most end up going "no call, no show". Can't say I blame them, and I hope they at least had a condom used on them. 7. 7. Jim Branson [ October 19, 2013 @ 06:22PM ] My draw (which I am proud to say I rarely get) is $290 based on 40 hrs at $7.25. The minimum hours we can work is 43 hours in a week if we take our day off, a 1 hour lunch each day, and our 1 day where we can leave 2 hrs early. Often times if my month is slow I will come in on my day off or come in on day off for an appointment. We are there past closing many days. I would say my average hours per week is 55. If I am understanding this article correctly if I were to draw for a week I would be due $398. Now that sounds good for me since I rarely hit draw but for the newbies it would not be good since that amount gets tallied up if they do not meet a weekly comm over 398 since they have to pay it back. It is not uncommon for someone to owe back draw for over $1000 so when they do hit a good commission(s) they pay it back and then get a draw again which they will pay back the next week. The point is, sales is tough and you have to know that going in. I would rather it be no pay requirement as a minimum if there is no commissions for that week besides covering the cost of any deductions such as support, health insurance ect. In the end it wont be much different since a draw check after deductions and taxes for me is only $80 bucks left and now I owe back draw for $290 so yes, getting a minimum wage for my actual hours on a draw would be nice but since it is nothing more than an advance you pay back I would prefer to opt out and just sell cars. One other question I have is regarding Holidays. Is there exemptions for Holiday pay or is that optional anyway? 8. 8. Dolores [ October 30, 2013 @ 07:23AM ] Your article states that four of the jobs that are exempt from overtime are executive, administrative, professional and computer-related . Can you elaborate on that and maybe give a more detailed job description? Or are you saying that anyone that works in an office is exempt? 9. 9. Hilary [ November 27, 2013 @ 08:01PM ] My question is, if a autobody shop slows down, does the company have to guarantee pay? For example, my bf shop slowed down drastically. He made only 20 hours this week working flat rate. Others in the company in different shops have a 40 hour guarantee. His particular shop is the only one within the company that does not offer a guarantee. He is being moved to one of those shops next week and was told he still won't have a guarantee even though he has more seniority than even the shop manager. 10. 10. Mitchell Cook [ January 30, 2014 @ 01:37PM ] An article over 7 years old hardly represents todays reaility. Check with your state Dealer Assoc. or NADA for real time legal interruption. This out dated view will cost you a fortune! 11. 11. bob g [ February 02, 2014 @ 10:55AM ] flat rate system is antiquatedand out of touch with reality.especially since most of the current flat rate work force is a bunch of gray-haired techs who do this for a living and could not find anything else comprable in pay scale.basicly your repairing the faults of $30/hr plus assemblers and manufacturers who will not admit to there shortcomings. 12. 12. Alice [ March 03, 2014 @ 08:50PM ] I'm investigating several wage theft issues and would like to help out with your questions. Email me at: [email protected] 13. 13. Jim Sabia [ June 13, 2014 @ 04:51AM ] Hi Justin, I have a boat and RV dealership with sales, service and parts employees that do the exact same things as an auto dealership. They are compensated in the same way also. Would my business qualify for the exemptions you discuss in your article and is the info still current? Thank you 14. 14. bill [ June 24, 2014 @ 09:06AM ] how are mechanics paid? 15. 15. Bill [ December 11, 2014 @ 11:38AM ] I work as a sales consultant at a dealership in Michigan. We are paid by commissioned sales. If we do not sell a vehicle during a two week pay period, we ARE paid minimum wage. However, once we actually have a commissioned sale, we have to pay back any of the minimum wage monies that we received from the previous pay period. I have discovered that this practice is common in car dealerships, but my question is, is this legal? 16. 16. Mike [ December 11, 2014 @ 03:20PM ] I work for a dealership in Texas that only pays in commission sales with bonuses if we meet certain qualifiers. Meaning that so many per month you receive a bonus..normally 500. We get paid weekly. We do not get paid a minimum salary per hour. Is this worth submitting to DOL, and if so, how do I do so without fear of reprisal? 17. 17. flat rate Eddy [ December 16, 2014 @ 07:05PM ] technicians are paid on tenths of an hour, there are 60 minutes in an hour broken down into tenths or 6 minute increments. lowest pay is 2 tenths or 12 minutes, oil change is 3 tenths, tire rotate is 4 tenths or 24 minutes, this goes on up to several hours for larger jobs. very tough way to earn steady income 18. 18. New to Auto [ March 04, 2015 @ 04:25AM ] Would the person who works in shipping and receiving - they inventory parts, deliver parts, order parts and deal with returns qualify for overtime. This position pays $10 an hour but the hours are approxi 55 hours a week but no overtime. I was told because it was a parts position it qualifies as exempt from overtime but there are no commissions involved here. 19. 19. Brian [ April 13, 2015 @ 11:39AM ] i am a service advisor in Florida just moved here and we have zero salary and straight comision is that legal? 20. 20. paul [ June 13, 2015 @ 08:25AM ] I just started at a large dealer ship in pa. Im not fully trained at all and mostly just the lube tech. I get 10 dollars an hour with no overtime pay. I would about 60-70 hour week. I don't have any of my ASE or certi. Do I qualify for overtime? 21. 21. Ronnie wooten [ July 27, 2015 @ 03:33PM ] I work for a large dealership, and get paid hourly, I'm being told that my overtime doesn't start til I hit 45 hours, is this correct?? 22. 22. Dewit [ August 23, 2015 @ 11:23AM ] I work for a used truck dealer and work 9.5 hours four days a week and 6 hours on the other day. I also work 4 hours on every third sat.. In addition I make trips for the dealer owner on my off hours with no extra pay. I get paid $150.00 a week salary plus $100.00 per unit sold. Many weeks I may not get paid more than $250.00. Do you see anything that is wrong with this payment. 23. 23. George [ September 10, 2015 @ 03:01PM ] I worked at tamiami ford in Naples Florida and they paid no minimum wage,just straight commission. I worked an entire month in 2013 and got paid nothing since all of my deals fell apart due to no fault of mine.I was actually out of pocket going to work and I lost money.I told e manger I am out of here and I quit.He tried to justify this by the prior months earnings which are ir relevant. I liked the owner and did not want to make trouble for the store but as a franchise huge volume dealer I expected more. 24. 24. Ray [ September 12, 2015 @ 07:07AM ] After reading a lot of these comments, I want to say something. In all states they have labor laws. Most of those laws will mandate that if a worker works over 40 hours a week they should be paid overtime, if they are an hourly employee. A lot of you also sound like you are working on what's called a commission against a draw system. Where if you don't earn any commissions the dealership will pay you a draw so that you can afford to eat, but yes you will owe that money back, if that's the way the pay plan is set up. I think some of you are working under a straight commission plan. Most companies will offer a short ramp up period, and pay you a draw for a few months before you go 100% commission. All of those scenarios are perfectly legal. I can remember when I sold cars, and I worked at a few different dealerships, some are shadier than others. Some offer more training than others. And they all have slightly different pay plans. You can make a lot of money in the car business when you learn the ropes and how to deal with management and the customers. The key is to never stop learning from the multitude of experts, there are plenty of good videos on you tube that teach you how to overcome a lot. 25. 25. Araceli [ October 30, 2015 @ 07:54PM ] I have a question my husband gets pay commision at a body shop and was wondering fo people that work commision needs to punch in and out of work and in and out of lunch? 26. 26. TT [ December 04, 2015 @ 05:51PM ] How and why these Dealership owners (scums!) can get away with so much! They starve employees they don't like by not giving them the leads to make money, they hiring uncertified mechanics so not to paid the money, they selling cars that fall apart, keep unhealthy work place for employees, rats and dirty bathrooms, dirty furniture, and no break room to speak of. No AC during the summer months and no heat during the winter months, All the while the owners racking in the millions, buying million dollars home and taking trips every months with their scums of friends and families. This is what I call the new area of slavery and it seems it is all done legally!!!! 27. 27. Francis Hoang [ January 16, 2016 @ 04:47PM ] I get a draw, my dealer now schedules us close to 60 hrs a week now. AVERAGE 56HRS. I have been there a while now. I was ok being scheduled 40hs a week and understood I may work days off or later hrs but that was always elective. I am now required to work 4 or 5 12 hrs days scheduled sometimes 6 days a week like this. Can they schedule me that many hours legally 28. 28. Goddess [ January 20, 2016 @ 04:42PM ] Is it illegal for a dealership not to disclose the commissions to the salesperson before the end of the month...a receipt to the salesperson of how much they made on each deal? 29. 29. redhatchett [ January 27, 2016 @ 06:37PM ] We have hourly tech that has woked every week for 10 years over 40 never got overtime. Owner says its legal. Correct or not 30. 30. redhatchett [ January 27, 2016 @ 06:37PM ] Hhh 31. 31. redhatchett [ January 27, 2016 @ 06:39PM ] We have a hourly mechanic that works over 40 hours each week owner says does not have to pay him overtime true or not 32. 32. Jamie [ March 08, 2016 @ 06:55PM ] Can a dealership change book time for maintenance iteams 33. 33. Tracy Hampshire [ April 20, 2016 @ 06:24AM ] Can an employer withhold flat rate hourly wage from a tech even though the tech performed the work as instructed by the service writer. There was a dispute between the service writer and customer over the price of labor which had nothing to do with the technician. This is a Pennsylvania dealership. 34. 34. HOPE [ June 10, 2016 @ 07:25AM ] How can a dealer put someone on minimum wage in Florida ( there is no labor board in FL , it's Federal only) then deduct that from commissions earned and give them a zero paycheck? Shouldn't they have to give them the hours they worked. Taking it back seems illegal to me. It's not a draw VS commission, it's salary based on hours. 35. 35. Concerned [ June 15, 2016 @ 04:36AM ] As a service adviser I have a salary and commission based pay plan. I work 55 hours a week. Should I be receiving overtime pay? 36. 36. Frank Kleeman [ June 30, 2016 @ 09:16AM ] I work at an auto dealership in the shipping and receiving end of the parts dept. As such, my responsibilities include checking in incoming parts, notifying customers of received special orders, returning warranty/claim parts to factory. I do NOT participate in the technician or retail procurement or sales of parts. The laws seem a bit obscure when applied to my position. Am I privy to overtime? 37. 37. Interested other half [ July 07, 2016 @ 04:31PM ] My husband works as a Service Advisor they get paid Salary @ 44 hrs per week however they work 9.5 hour days 7:30 - 6 with an hour for lunch and the rotate every 4th Saturday (48 hrs a week) min sometimes more, they are NEVER paid for meetings after hours as well. He has been with the same dealership now for 8+ years. Up until the new manager was hired less then a year ago when they worked Saturday they just had to work with no additional pay now they get a day off in the week that they work the Saturday. Its my understanding by reading your notice here that they DO qualify for overtime! How can one submit a request to the DOL to have the time reviewed and does anyone know if this will make a change when the new law is implemented in December! 38. 38. Danny gray [ July 19, 2016 @ 07:40PM ] I am a salesman at a new car dealership and I am payed on commission 25 per cent of the gross profit on each deal. My problem is that when I get my pay sheet the numbers don't add up and I can't get an answer why. 39. 39. anon please [ August 05, 2016 @ 06:08AM ] I work as a commission only sales associate at a dealership in PA. When I am forced to do other jobs that keep my away from the sales floor, IE 3 hours shoveling sidewalks in winter. over 10 hours this week driving to get cars elsewhere due to not enough drivers etc As I am away from the sales area, I can not sell to customers and I am unable to make an income, since I am commission ONLY I am NOT paid for these activities. This does not sound legal to me. Am I correct in assuming I should at least be paid drivers wage for doing drivers job? 40. 40. Mike Morse [ August 11, 2016 @ 06:08PM ] I work as an hourly Mechanic in a flat rate shop for the past 3 years. I make roughly 43 to 44 hours a week and im paid a hourly pay of 15 dollars an hour for all my hours including my over 40 hours. My question is as a lube technician, and tire changer should i be getting time and a half for all hours over 40. Thanks 41. 41. Rob [ August 22, 2016 @ 02:49PM ] Is it unlawful for me to expect my flat rate technicians to mop up their own bays after repairing a vehicle that resulted in fluid and oil spills? 42. 42. Donna Lewis [ September 05, 2016 @ 08:15AM ] I am a parts manager at a small dealership. I supervise 1 person. I work approximately 20 to 30 hours over a month which I am not compensated. I work every other Saturday and receive no pay for the day. Taking into consideration the duties test shouldn't I qualify for overtime? 43. 43. Hope [ November 02, 2016 @ 04:13AM ] The dealership provides a minimum wage of $8.05 per hour and calls it a draw. The employees clock in and out daily. The “draw” to salespeople and settling their commissions is done on a biweekly basis with a monthly washout as well. To settle the amount due the salesperson at the end of the two week pay period, the dealer is taking the commissions earned if any off of any hours the employee has completed for the two weeks. This often means that employees are paid less than the minimum wage for all hours worked. There is no subsidy provided for payment of minimum wages for the salesperson to recoup the minimum wage for those hours earned. It is not uncommon to see nearly zero paychecks when the so called "draw" is taken out of the earned commissions. Hard to swallow when you see someone going home with a negligible paycheck if any at all, and a family to feed. 44. 44. Josenildo silva [ November 14, 2016 @ 09:41PM ] I am auto technician , there is the first time, i work flat rate.they pay me $20,00 a hour flate rate. No salary, no minimo wage at all.If i go to work and does not have job i do not get any pay, but i have to stay at my job from 8:00 am to6:00 pm , with one hour lunch, and working from monday to saturday.saturday untill 2:00 pm.They said only after 90 days i can get uniform, vacation, etc. By the law is it right how they are doing? I live in Florida. 45. 45. Wendy Tyree [ November 17, 2016 @ 03:02PM ] I am a service advisor and work 52 hours a week. With lunch breaks I would work 7 hours of overtime a week. I'm paid salary plus commission. My commission is less than my salary. The advisors are being told that the salary law does not include us. How do we know we are being told the truth 46. 46. Christine Pahl [ November 18, 2016 @ 08:04AM ] Hello, is an RV dealership considered "automobile" sales and therefore can use the exemption for mechanics, sales and parts people? I saw some info on the RVDA website that suggested they cannot use it. THX 47. 47. Barry Phipps [ November 20, 2016 @ 04:20PM ] I am a hourly paid mechanic..i work 45 hours a week will i get paid time and a half for the 5 hours over? 48. 48. Barry Phipps [ November 20, 2016 @ 04:21PM ] I am a hourly paid mechanic.. I work 45 hours a week...will I get time and a half for the 5 hours worked over 40 49. 49. Bruce [ November 20, 2016 @ 07:05PM ] I am a service writer at a gm dealer ship. I work 46.5 hours per week should I get over time after 40 hours 50. 50. MM [ December 03, 2016 @ 10:20AM ] I wok at a GM dealer parts department for over 12 years, making 11 an hour no OT still can not live on that living alone, paying all bills what is worse is being paid bi-monthly. Owners need to pay people right not just line their pockets on our hard work 51. 51. Roger [ December 31, 2016 @ 06:33PM ] I have worked as a auto mechanic repair shop . Being a apprentice mechanic I did not know how much I should get paid per hour. Just liked fixing cars. Shops should pay a percentage of what is earned by the shop per repair & if they want top quality mechanics pay them a percentage and pick up their health insurance since the shop make up to 12 to 15 times what a mechanic is paid hourly. The faster a mechanic can repair a car the more he or she should make. Verses a guy that just greases the car and changes oil who needs no education in the field to change oil at Walmart or mount tires. 52. 52. WHERR [ January 02, 2017 @ 08:09AM ] DO SERVICE ADVISORS GET OVERTIME? 53. 53. Stephanie [ January 10, 2017 @ 10:28AM ] I worked as a parts advisor for 4yrs. I was on a pay plan. I was on commission, but... Not a sales employee. We all made a percentage of what the Dept made "In totality" not what each one of us sold. 54. 54. Patricia Ham [ February 06, 2017 @ 04:26AM ] Well I sold 54 cars in a 2 month period and never got paid. No one would help me and jept me from going to human resources, those managers got fired for stealing funds from company but we the employees were never compensated 55. 55. tom bender [ April 13, 2017 @ 12:21PM ] I work as a car salesmen sometimes 16 hour days. we are payed on commission and draw $380wk that is to be payed if commissons are lower than that . they then take that $ back usually the next check and we are never paid for the extreme overtime (over 40hrs wkly) we work all the time. can they get away with that ....Illinois 56. 56. tom bender [ April 13, 2017 @ 12:21PM ] I work as a car salesmen sometimes 16 hour days. we are payed on commission and draw $380wk that is to be payed if commissons are lower than that . they then take that $ back usually the next check and we are never paid for the extreme overtime (over 40hrs wkly) we work all the time. can they get away with that ....Illinois 57. 57. John [ June 26, 2017 @ 08:16PM ] The following are examples of employees exempt from the overtime pay requirements only: "Auto, truck, or farm implement partsclerks and mechanics employed by non-manufacturing establishments primarily engaged in selling these items to ultimate purchasers" This is extremely convoluted and complex!I am so sick of being trampled on as a mechanic.The government offers virtually no protections and the employers have learned to manipulate the system so much that they pay whatever they like.If you work at Tacobell and an employer tampers with the time clock it is a big deal but in the auto business they manipulate every aspect.In California I was paid hourly and got paid time and a half for anything over 8 a day.In Washington this jerk gives me an oil change and a used car inspection to do on my lunch hour everyday for 3 months straight for absolutely nothing! 58. 58. John [ June 26, 2017 @ 08:42PM ] I think a new car dealer is a manufacturing establishment and an independent repair shop isn't primarily engaged in selling autos.Better to just stay away from anything to do with any of it! 59. 59. Jonny [ September 02, 2017 @ 10:56PM ] I know someone who worked as a lube tech at a new car dealership in Wisconsin, was paid by the hour with no overtime pay, and discovered that the law clearly states he was entitled to overtime after 40 hours of work, despite the exemption in place for mechanics. The dealership claimed all the lube techs were exempt as well. He then filed a complaint with the Department of Labor. Not only did the Department of Labor NOT get him and the other lube techs their unpaid overtime, but they broke confidentiality and told the dealership's owners who it was who filed the complaint. The dealership first attempted to fire the employee 1 week later, without cause, to which the employee objected to, eventually persuading his manager to keep him on based on the employee's above average work ethic and the meritless nature of the termination. A week after that, the dealership announced it would be relocating down the road and that 1 employee was "laid off" while the rest all kept their jobs and relocated a few blocks away. Then the dealership tried to manipulate the laid off employee's payroll records in attempts to prevent him from collecting full unemployment benefits, which the employee fought against and eventually won. People think they have all these rights and entitlements when it comes to employment, but in reality, corporations and the wealthy elites run the country. If a government agency is headed by a pro-buisiness/anti-worker administration (Republican/Clinton) your employer can basically break the law, screw employees over, and get away with it, because the regulators can and will simply refuse to do their jobs and protect American workers. 60. 60. Jon [ October 05, 2017 @ 10:16AM ] I work as a flat rate mechanic in new Hampshire. Is there any legislation stating that employers must pay at least at minimum of the book times. My employer is constantly cutting deals with customers and many times and extra labor that I should be booking is lost. It makes no sense to me that he would sell himself short. And infuriates me that it is at my expense. We have not always been a flat rate shop and in the last almost 4 years of employment there have been numerous mistakes made regarding my pay. What can I do? I like where I work but I need to be compensated for my time. 61. 61. jarvis jenkins [ October 15, 2017 @ 07:14PM ] If I get paid $350 a week because I didn't sell anything do I have to pay that back? 62. 62. jarvis jenkins [ October 15, 2017 @ 07:15PM ] Do I need to pay back $350 draw? 63. 63. Annette Cabezas [ November 14, 2017 @ 09:24AM ] I am little clueless, if someone can direct me to the right path I will appreciated. My husband started working as a picker at russell and smith Ford Parts warehouse, they told him they didn't pay over time due to a law dealers have. Anyways after one year they moved him to Russell and Smith Collision as a parts clerk , he found out that his coworkers who fulfill other tasks get paid overtime except him, also not too long ago he notice they haven't changed his title in their system. I am not sure if this "law" applies to certain titles? 64. 64. Tim [ December 10, 2017 @ 09:49AM ] Very few of the previous 63 comments answer the questions that are being asked. The article is very informative but what good is this web page if the questions don't get answered? 65. 65. Tom Ostrow [ December 31, 2017 @ 08:24AM ] I work for a new car dealer in Illinois that pays a $300 a week salary based on the sales person selling 5 or more cars a month. If the sales person does not meet the monthly quota of 5 cars, they can get charged back the $300 weekly salary and it carries from month to month. Plus this dealer only pays a $300 vacation pay and not a weekly percentage of your yearly income. So the people are scared to take a vacation worried they won't make there quota. Any talk of Union car sales people yet in Illinois and why can't car sales people join the UAW? 66. 66. Christina [ January 17, 2018 @ 07:56PM ] My boyfriend recently started working for a car dealership as an “auto technician”, meaning he mostly does oil changes and tire rotations, along with some other basic things like that. He makss $16/hr flat rate pay, but in a 9 hour shift he usually only logs 2-3 hours. He is not allowed to leave early even though technically he isn’t even being paid for being there if there are no work orders, and overall he is averaging between $32-$48 per 9 hour period, or around $3.50-$5.30 per hour. How on earth is this legal?

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