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Pay changes for a flat rate technician,NEED HELP Ohio
Ok I have a bit of a confusing problem here, but I don't think this is a good idea. I have been an automotive technician for over 20 years and have worked in private shops and dealerships. I am currently working for a privately owned repair facility where I am paid on a flat rate system. I have been there for over 6 years now and have always been paid by how many hours I have turned and not worked, with no overtime. Which is fine. Today I received some news on how I am going to be paid, which is kind of confusing. Also, may not be legal. The owner of the shop said he wants to show our pay on our checks differently than he has in the past. He still wants to pay us for the hours that we turn, but on our check he wants to show us being paid for the hours that we are there. In other words let's say I actually work 50 hours in one week and turn 70 hours in that week. He want to show on my paycheck that I worked 40 hours at say $15.00 per hour and then 10 hours of overtime at time and a half. And then the rest of the money he would owe he would list as a bonus. I do not agree with this and it seems to me to be illegal. Also if it is not illegal I would think that if I were to go get credit for something like a house, car, or credit card, it would affect the decision, because they would look at that like I have a base salary and a bonus and would just take into consideration my base salary, even though in reality my actual salary is the total. Does anyone have any thoughts on this or can lead me to somewhere or someone who can give me some more information about this? I would really appreciate any and all help I could get.
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- Sure. First of all, private shops and dealers have somewhat different laws. There is a very specific overtime exception for mechanics (and certain other employees) for Auto Dealers only that removes the obligation for the 50% OT premium. The exact same employee doing exactly the same work for a private shop would get the overtime premium while they would not get it while working at an Auto Dealer. (Your tax dollars at work).
Federal Auto Dealer exception. (http://www.dol.gov/esa/whd/regs/compliance/whdfs11.pdf)
Past that, let's try an example. Bob is a auto mechanic and works at a private shop. Bob is in a state with a minimum wage of $8/hr. Bob works (or is forced to spend time in the shop) a total of 50 hours this week. Under labor law Bob must be paid at least 40 hours .laborlaw.questionfor.info. $8/hr = $320, plus 10 hours .laborlaw.questionfor.info. $12/hr = $120, for a total of $440. This is black letter law. There is nothing the employer can do to get around this rule. (The same employer working for an Auto Dealer could legally be paid 50 hours .laborlaw.questionfor.info. $8/hr = $400).
Now the employer can legally pay more. Let's say that the employer pays Flag Rates (piece work by another name), where they pay a fixed amount for completed jobs only. This is legal, but only as long as the MW/OT rules are followed. Functionally employees paid piece rates must go through two different calculations, and the employee legally gets paid the greater of the two calculations. It is not uncommon (unfortunately) for auto mechanic related employers to make the piece work calculation so complicated that no one can follow it. In theory this is a contract and the employee could hold the employer to the contract. In practice, this is often not in writting and difficult to enforce. However, the employer is still legally must collect hours worked (or hours sufficently restricted to be considered legally hours worked), plus pay MW and OT. And the MW/OT rules are generally easy to enforce.#1; Wed, 27 Aug 2008 17:29:00 GMT