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  • Similar Topics

    • By ASOG Podcast
      Brian Walker of Shop Market Pros explaining what makes them different at the TOOLS Conference 2021.
    • By carmcapriotto
      Show Notes:
      Maryann Croce's "Life Happens" Download HERE Connect with the show:
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      Dorman gives people greater freedom to fix vehicles by constantly developing new repair solutions that put owners and technicians first. By always innovating, Dorman has led the way in growing the aftermarket. Here you will see a few examples of a Dorman OE Fix. An OE FIX is a Dorman repair solution you can’t get from the original equipment manufacturer. It means they found a situation where they believe the OEM wasn’t giving repair professionals what they wanted, so we fixed it. Everything Dorman does is centered around providing customer value, both in the quality of products, and the creativity of solutions. Our engineers and designers go out of their way to save repair technicians time and save vehicle owners money. Want to really go under the hood? Take the Dorman Virtual Tour at www.DormanProducts.com/Tour

      Click to go to the Podcast on Remarkable Results Radio
    • By ASOG Podcast
      What's the biggest mistake owners are making when marketing their shops?
    • By bantar
      Started a new thread based on a comment from:  Are you paying your employees what they deserve?
      Thanks to CTC who warned that we need to be Compliant in our pay plans, I called the Dallas Office of the Dept of Labor Wage and Hour Division to check on my compliance.   Very friendly and knowledgeable.  Didn't even ask who I was.  I encourage you to call.  However, what she said was super-complicated if it's the first time that you've heard it.  It still hurt my head on today's call.   The goal of this message is to explain OT calculations and then to explain the flat rate pay as related to OT.   I'm only presenting this to give you background before you call W&H yourself.    I'm not an expert on W&H.
      This focuses on non-salaried employees who are eligible for OT payments.  
      Background:
      In general, OT pay is more complicated if you have variable pay plans (bonuses or extra payments).   Regular hourly folks working OT get 1.5 times their "regular rate" (which is the same as their hourly rate).    If they don't get any extra pay, this is easily computed.  
      When variable pay is involved, we need to know how much the employee is really making this week.   That is, we must calculate their "Regular Rate" because the variable pay (bonuses) increases their normal hourly rate.   When we pay OT, we must pay 1.5 times their "Regular Rate".    This is a protection for the employees to ensure that they are being fairly paid even though their pay rate varies week to week.
      Regular Rate Computation:
      Figure out the employee's total compensation for this week (we are ignoring OT for this calculation).  Divide this by the total hours worked this week. This is their regular rate for THIS week. For example:   Joe makes $10/hr and earned $100 bonus this week while working 50 hours.   His total pay for the week is $10 * 50 hours + $100 bonus = $500 + $100 = $600.   His Regular Rate is $600/50 hours = $12/hr.   When you pay him OT, you will be paying him 10 hours * 12 Regular Rate/hr * 1.5 = $180.   This is added to his base rate of 40 hours * $10/hr, so this week, he makes $400 + 180 = $580 + $100 bonus = $680 total pay.
      There is a shortcut to computing regular rate that I find faster to compute.   Just take the variable pay (bonus) and divide it by the hours worked.   $100 bonus/50 hours = $2/hr   Joe's Regular Rate is $10+$2=$12/hr.   His overtime rate is $12 * 1.5 = $18 (instead of $15). 
      Using ADP (and other payroll systems):
      For employees that are getting OT with variable pay, I create a separate pay line in my payroll.   Line 1 is 40 hours at their normal hourly rate.  Line 2 is OT hours at Regular rate.   The payroll software multiplies the regular rate * 1.5 to calculate their OT pay.
      Regular Pay Line:  40 Hours @ $10/hr OT Pay Line: 10 Hours @ $12/hr Flat Rate:
      Per W&H, Flat Rate still requires OT pay if more than 40 hours are worked.  Therefore, we are required to compute a "Regular Rate" to pay OT.    This means we need time clock records.   W&H suggested a few different ways of computing it for Flat Rate employees (one was a weighted average, but I didn't dig into this).   Also, minimum wage must be adhered to as well.
      I threw a few examples of pay (flag bonuses, incentives, make-up hours, etc) at W&H and in the end, it didn't matter what the mix of payments were.   All payments are combined to compute a Regular Rate.  This can be bonuses for flagged hours or bonuses for sales or it could be 20 hours of flag and 20 hours of guaranteed pay (to equal 40 hours).   What mattered was how many hours did the non-salaried worker work?   What is their regular rate?   Pay OT using the Regular Rate.
       
       
       
    • By carmcapriotto
      Advancing the Aftermarket. Of late there has been a lot of dialogue around my circles about being paid for the value you give and bring to your customer. I recently saw a survey of shops whose sales averaged $750,000 yet their net operating profit was only 2%. That is only a $15,000 average net operating income before tax. This troubling stat begs the question: How do you continue to invest in the business and even provide a living wage for you and your team at that level of profit? 98.9% of shop owners that I asked about raising their labor rate told me that they were the one who was most affected by the change. (their hesitancy and the pressure is all unjust)
      Listen for free on Apple Podcasts, Google Podcasts, Spreaker, iHeart Radio, Spotify, Podchaser, and many more. Mobile Listening APP’s HERE Find every podcast episode HERE. Every episode is segmented by Series HERE. Key Word Search HERE. Be socially involved and in touch with the show: Facebook   Twitter   Linked In   Email Join the Ecosystem – Subscribe to the INSIDER NEWSLETTER HERE. Buy me a coffee  
      Click to go to the Podcast on Remarkable Results Radio


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