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Dealership pay plan and please tell me if it is legal in California

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  • Dealership pay plan and please tell me if it is legal in California

    Dealership Pay Plan

    COMMISSION will be calculated as follows:
    $9.00 per hour on hours (Cash/Warranty/Internal) sold with an effective labor rate
    (Customer Pay) of $100 or above
    $7.00 per hour on hours (Cash/Warranty/Internal) sold with an effective labor rate
    (Customer Pay) of $99 or less (per pay period)
    CSI is calculated $200 only if CSI monthly score is above the regions monthly score
    $300 if the CSI monthly score is 97% of higher.
    CUSTOMER PAY BONUS 100 cp hours @ $100 effective labor rate per pay period-commission is calculated @$2.00more per hour on hours sold for the pay period
    Production Bonus $200 Tech efficiency equals 100% for pay period -$300 Techs efficiency equals 110% for pay period
    SELLS’ Bonus $100for every $1000 over $75,000 (gross)
    ASM’s must produce 100 customer pay hours each month
    ASM’s must maintain a CSI monthly score equal or greater than the regions monthly score
    Overall satisfaction score
    This does not constitute a contract and can be changed at anytime by management
    Signatures below indicate knowledge and acceptance pf pay plan

    _________________________________ ___________________________

    employees must be full line certified to receive bonus, spiff or percentage increase prior to payroll date

    THIS IS the part on check stub that is CONFUSING to all of us. This is just a rendition of the check.ok

    [Type][ hours ][rate][earnings][YTD] etc...
    COM ][ ][ ][ 449.20][ ]

    *******(What is min how is he getting his calculations?)
    MIN ][ ][ ][ 524.36][

    This pay][972.56]
    now take all the deductions out and drum roll i took home {466.71}

    Now i have been a service advisor for more than 25 years I stepped in to be manager one time for about six months long time ago. Yes my now manager was manager of another store same dealership owner. When i was manager he had a little fit but owner sided with me to this day the owner comes to me. Now we are starting a new store another branch no cliental at all. one day the Owner came in said we were doing a hell of a job.
    Same day manager said we are doing so bad that they (meaning owner) isn't happy with the store. Oh and the Service manager got paid less than I did. WoW
    i plead with some one to give me some direction or help I like my job I just tired of the drama.


  • #2
    I am not a contract law expert and have no opinion on the legality of the contract from a contract law perspective. This is a labor law website, not a contract law website, and I can give you a labor law answer only. I can state the obvious that it is not legally posisble for a contract (any contract) to override labor law, but labor law can override contract law.

    - Under federal law (FLSA) a salesperson working for an auto dealer must be paid at least minimum wage (averaged over the work week) but does not need to be paid the overtime premium. Meaning, if they work 60 hours, they have to be paid at least $7.25/hr for those 60 hours.

    - CA follows all federal law (no choice in the matter) but CA can and does have rules in addition to the federal law. CA can have a higher standard then the feds, just not a lower standard. For example a higher minimum wage ($8/hr) and a very different (from federal) requirement that each and every hour be paid at least minimum wage. I am not sure if there is a CA daily overtime exception for CA auto dealers mirroring the federal exception or not. If so, it would be found in the IWC Wage Orders. Not my industry, and this is nothing I have had a need to hard research. I have a CA list of overtime exceptions and this is not on there, so my best guess is that CA does not recognize the federal exception.
    "Reality is that which, when you stop believing in it, doesn't go away".
    Philip K. **** (1928-1982)


    • #3
      I am wondering if they paid correctly and the ca mw is $8 hr

      Would you know where I should look as to how I should be getting paid


      • #4
        Not asking if the contract is legal I just realized I am asking is the way they pay

        I am fustrated I do not understand this way they are paying I have read those links and i am sorry It's all complicated for me all i wish is maybe a yes or may not or look like it i am just so fustrated. I don't even know how to use the icons or emoticons please don't take this as an attack on you or your reply post I thank anyone who has tried to answer Just wish it was a little clear to me I am scared to go and start something and lose what little money i get because of the job situation around where i live is 0. Thank again


        • #5
          Alright. I cannot help you with the wording of the document. No one on this website (or any other website) can. If you want to pursue that, see a local contract law attorney.


          Past that, you must be paid at least $8/hr. Period. No exceptions for any reason. If you are not being paid that much, file a wage claim with CA-DLSE.

          I do not know how to make that statement any clearer then I just did.
          "Reality is that which, when you stop believing in it, doesn't go away".
          Philip K. **** (1928-1982)


          • #6
            Thank you

            Thank you Very much


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