Understanding overtime pay eligibility for auto mechanics can be complex yet essential for automotive businesses. To aid in navigating this issue, the NFIB Legal Center has developed a fact sheet covering important considerations related to overtime pay under the Fair Labor Standards Act (FLSA), which is the federal wage and hour law.
The fact sheet outlines critical exemptions that often apply to auto mechanics, such as the Automotive Dealer Exemption and the Retail or Service Establishment Exemption. These exemptions play a role in determining whether a mechanic is entitled to overtime pay or exempt from it, depending on the business type and employee compensation method.
Proper employee classification is crucial to avoid significant legal and financial consequences. Misclassifying mechanics may lead to audits by the U.S. Department of Labor or wage-and-hour lawsuits, resulting in fines and penalties.
Additionally, how a mechanic is paid—whether by flat rate, flag rate, or hourly wage—can affect their eligibility for overtime. The fact sheet explains why payment methodology matters when determining if a mechanic qualifies for an FLSA overtime exemption.
NFIB’s fact sheet aims to help automotive businesses understand their responsibilities regarding overtime pay. For further inquiries, contact the NFIB Legal Center at info@nfib.org.
