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Auto Dealer Mechanic Flat Rate vs Time clock hours worked

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  • Auto Dealer Mechanic Flat Rate vs Time clock hours worked

    A mechanic flags 70 hours flat rate of $16.00 per hour. He works 8 hours a day in an 11 day pay period. He is paid the 70 hours flat rate of $16.00. He did not work any ovetime is he owed any pay for the hours on time card @$8.00 per hour?

  • #2
    What state? It sometimes makes a difference.

    Looking at federal law (FLSA) only, since I do not know the state, the employee must be paid at least $7.25/hr for all hours actually worked averaged for each workweek.

    I am not sure if this is your question, but "flag" hours are generally standard hours required to finish a task. The feds do not care about standard hours, they care about hours actually worked. The feds also lose interest once minimum wage (and overtime) has been complied with.
    "Reality is that which, when you stop believing in it, doesn't go away".
    Philip K. **** (1928-1982)

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    • #3
      Why does this sound like a homework question to me?
      The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

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      • #4
        I have a feeling Maureen will "probably" not be coming back with the state.
        Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

        Live in peace with animals. Animals bring love to our hearts and warmth to our souls.

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        • #5
          Thank you for the responses. To answer the only one that tried to answer the question. DAW, the State of California.

          The employer figures the pay by the formula used by the state. If the Flat Rate or Flag Rate is more that the hours worked at the minimum wage rate of $8.00 per hour than hours are not paid.

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          • #6
            OK, CA is somewhat different then federal rules.

            First of all, piece work (what the feds call this) is legal if done correctly. There is a two-step approach. Figure out the payroll liability using the PW method. Figure out the payroll liability using the MW method. The bigger of the two answers is the one used.

            CA however does not use the federal "average over the workweek" method to determine MW. CA instead says that each hour must be paid at least MW, which is not what the feds say. CA MW is indeed $8/hr.

            Also, do you supply your own tools? If so, CA (likely) has a "twice MW" requirement for most employees who supply their own tools, especially in the auto repair area. Meaning your MW could be $16/hr, not $8/hr.
            "Reality is that which, when you stop believing in it, doesn't go away".
            Philip K. **** (1928-1982)

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            • #7
              California Auto Dealer Mechanics Wage and Hour

              Thank you, yes we do supply tools, however most Techs prefer to use their own. We do not require them to do so. We also, have them sign a notice that we provide tools, although almost everyone of them makes at least twice the minimum wage. Since we are still strugguling in this economic climate some have been reduced to below $16.00 per hour but if them do not average minimum wage for flag hours then they are paid the difference at $8.00 per hour.

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              • #8
                We are getting into areas outside my hard expertise, but if I was the employer and did not want to be subject to the $16/hr MW on the tool rule, I would not offer to let the employee use their own tools, I would tell that as a condition of employment that they will use the employer's tools. I am not sure that the employee signing a piece of paper legally means anything, since that is not discussed in the official rules. The official rules say that IF the employee uses their own tools, THEN the employer must pay $16/hr MW. It reads like a short, simple statement. If you want to try and finesse that rule, then maybe you should formally ask CA-DLSE for an opinion letter first.

                If any of your employees leaves angry, it costs them nothing to file a wage claim. I am a big fan of not leaving obvious sticks lying around for the employees/government to hit me with.
                "Reality is that which, when you stop believing in it, doesn't go away".
                Philip K. **** (1928-1982)

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