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By Joe Marconi
There has been a lot of controversy recently with flat rate pay plans. Below is a link to an article about a technician's strike that was held in Chicago. Although the strike and issues in the article centered around dealerships, the article brought up good points about flat rate pay, and the low hourly pay many techs receive. It points to reasons why many techs are unhappy, leaving the industry and why we have issues attracting quality people to our industry.
I don't want to start a firestorm, and there are many forms of flat rate pay...but, is it time to rethink flat rate pay plans? And also, we really need to compensate our employees at a standard that is in line with the training, the tools that are required and skills needed these days.
I think it is worth your while to read the article and start a conversation on this topic.
Arizona shop owners we just switched to flat rate for our technicians. We offer a 30 hour guarantee. My question is do you require technicians to clock in and clock out? Are we required to pay overtime for hours worked over 40 hours clocked even if they flagged less? Who did you consult about this? Our technicians like to work over 40 hours to get flag hours in should we not allow this?
I am going to hire on a new technician in a few weeks here and it will be the first time I am considering paying them flag hours. I have adp payroll processing so they take care of all the taxes and things of that sort for all the employees that are hourly.
With flag rate hours, how are the taxes taken out for this particular type of wages for the technicians weekly check? I would appreciate all the insight I can get that way when the time comes I am very prepared.
Thanks again for your help