If you’re running an automotive business such as a mechanic shop, body shop, or dealership with a service center, understanding overtime pay eligibility for your mechanics can be complicated. But it is also crucial to your business. To help navigate this complex issue, NFIB’s Legal Center has developed a fact sheet that covers the most important considerations and topics related to overtime pay for mechanics under the Fair Labor Standards Act (FLSA), the federal wage and hour law.
Exemptions
Our fact sheet breaks down the critical exemptions that often apply to auto mechanics, such as the Automotive Dealer Exemption and the Retail or Service Establishment Exemption. These exemptions can determine whether a mechanic is entitled to overtime pay or exempt from it, depending on the type of business and how the employee is compensated.
Proper employee classification is essential to avoid significant legal and financial consequences for businesses. Misclassifying mechanics can lead to U.S. Department of Labor audits or wage-and-hour lawsuits, resulting in fines and penalties.
Wage Rates
Additionally, how a mechanic is paid—whether by flat rate, flag rate, or hourly wage—can influence the employee’s overtime eligibility. Our fact sheet explains why payment methodology matters when determining if a mechanic qualifies for overtime exemption under the FLSA.
Takeaways
NFIB’s fact sheet is designed to help automotive businesses better understand responsibilities regarding overtime pay.
Still have questions? Reach out to the NFIB Legal Center at [email protected].
