How does Flag pay work?
A flag rate is simply a pre-designated amount of time that a repair should normally take when performed under normal circumstances. To determine pay for any repair, the flag time is multiplied by a pay rate.
How are mechanics paid at dealerships?
The dealership in question (along with most dealerships, and some big name chain stores such as the “__ Tire” franchises) pay their technicians using a system called flat rate. Under this system, the technicians receive no hourly wage, and are 100% commission paid.
What does it mean to flag hours?
Auto mechanics often get paid by “flag hours” where their compensation is based upon the value of a particular repair. The auto mechanic will get paid a fixed number of hours at their regular rate for a repair regardless of how long it actually takes.
Is flat rate better than hourly?
In a flat rate system, newer mechanics may take longer on jobs and may be paid less overall than if they were in an hourly rate pay system. For technicians who have extensive experience and certifications, the value of flat rate pay may also be lower than what they might earn in an hourly rate pay system.
How many hours do mechanics work a day?
Usually work a standard 40-hour week. May work evenings and weekends if employed in a shop with extended hours.
What are jobs that pay $50 an hour?
The 20 Best Jobs that Pay $50 an Hour
- Marketing manager. Average salary: $63.76 per hour.
- HR manager. Average salary: $54.47 per hour.
- Software developer. Average salary: $50.77 per hour.
- Physicist. Average salary: $57.49 per hour.
- Nurse practitioner.
- PR manager.
- Financial manager.
- Aerospace engineer.
Is $35 an hour a good salary?
Is $35 an Hour a Good Salary? Making $35 an hour will put you in one of the higher tiers of income among Americans. Only ~30% of household incomes make more than the $66,560 salary that $35 an hour provides.
Is it worth becoming an auto mechanic?
Becoming a mechanic can be well worth the effort if you stick with it, and you can make good money doing it, but if you don’t plan on doing it for a living, then just stick to your own car repairs.
Is it hard to become a car mechanic?
Even though it can be extremely tough, the physical labor of working as a mechanic can be very rewarding. Some people really enjoy being on their feet and working with their hands. If this is you, strap up and start wrenching. If not, make sure you strongly consider your path as a mechanic.
Who is the highest paid mechanic?
The highest paid mechanic specialty is the repair of aircraft. On average, aircraft mechanics earned $64,090 per year in 2019, according to the BLS.
How does flag rate pay affect a mechanic’s pay?
The mechanic is paid a set amount of money for each flagged hour completed. Businesses often believe this piece-rate method of service increases productivity and may also allow them to escape paying overtime. How does flat and flag rate payment structures affect a mechanic’s pay?
How are car dealers paid on flat rate?
Most, if not all, dealers perform repairs and maintain their customer’s cars either through some manufacturer warranty system or through customer direct pay. These dealers pay their mechanics on a flat rate system (also known as “flag” system).
When does an auto mechanic not have to pay overtime?
The Federal Fair Labor Standards Act On Mechanics Section 7 (i) of the FLSA provides an exemption from the overtime pay requirement for any employee of a retail or service establishment if: 1. The regular rate of pay of such employee (i.e., his hourly rate) is in excess of one and one-half times the minimum wage, and 2.
How much does a car dealership technician make?
The typical dealership technician earns more than $61,000 a year, the National Automobile Dealers Association reports. Under flat rate, an experienced tech can cram 11, 12 or more billable hours into an eight-hour work day — on a good day.