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  1. #1
    Join Date
    Apr 2015
    Posts
    3

    Default Dealers Modifying Flat Rate Compensation

    My question involves employment and labor law for the state of: Massachusetts

    So I am aware that flat rate techs fall through a lot of cracks when it comes to labor laws, but one thing has come to my attention that I wonder about. Over my career, I have seen dealers exploiting flat rate in various ways. As the aftermarket becomes cheaper for maintenance and basic services, dealers are forced to reduce what they charge for these services, facing a smaller profit margin. To compensate for this, the dealer I currently work for has cut labor times for the most common services. There is no universal "book" to reference for labor times. But guides like alldata provide a guideline, and of course, each manufacturer has their own labor guide for their own product. What I'm seeing now is dealers lowering flat rate times below even the manufacturer specified warranty time to lower their bottom line. For example, a Nissan maxima needs a four wheel alignment. Warranty time out of Nissan's manual pays 1.5 hours. Alldata shows 2.0 hours for customer pay rate. Our dealer only pays us 1.0 hour because "they can't be competitive" if they charge any more. Is flat rate legally modifiable in this sense. I do upwards of 10 alignments a week and would be banking an additional 5 hours of time if even the minimum book time was being paid. This extends to many other services as well. Labor time is discounted for the sales department's used car inventory work. The discount comes out of our paychecks. Is this all legal?
    Thanks in advance,
    Jayadev

    Thanks in advance,
    Jeff

  2. #2
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: Dealers Modifying Flat Rate Compensation

    unless you have a contract stating they must use manufacturer's time or alldata time or some other source, yes, they can reduce it to anything they wish.

    the only legal requirement is you must be paid an equivalent of at least minimum wage for the hours worked and time and one half for time worked over 40 hours.

  3. #3
    Join Date
    Sep 2011
    Location
    OH10
    Posts
    17,019

    Default Re: Dealers Modifying Flat Rate Compensation

    As long as you earn the equivalent of minimum wage for the hours worked and you do not have a contract defining the way labor hours are paid, you are SOL.

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