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Are Your Employee Pay Plans Legal?

Joe Marconi


As an auto shop owner and a business development coach, I know from experience that there are countless ways to create employee pay plans. From hourly, flat-rate, salary, incentive-based, performance-based, team bonuses, profit sharing, on and on and on. However, the question is: are your pay plans legal? 

To complicate matters, overtime and minimum wage laws differ from state to state and may vary from county to county within a state.  Wage and hour laws are ever-changing too.  

Here’s my advice to shop owners: Consider hiring a wage and hour labor attorney or retain a human resource company specializing in wage and hour regulations to review your employee pay plans. You cannot leave it to chance. All it takes is one disgruntle employee to make a claim against you, and your life could be hell.  You should also have your pay plans reviewed every few years and any time you change the details of a plan.

Effective pay plans can considerably benefit your auto repair shop and incentivize your employees to reach their goals and company goals. In addition, great pay plans can help retain valuable employees.

Protect yourself, your business, and your employees – Ensure your employee pay plans are compliant with federal, state, and local laws and regulations.


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