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[Podcast] RR 466: Mike Davidson – Compliance to Wage and Hour Rules for Aftermarket Professionals


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Mike Davidson is from Parkway Automotive in Little Rock, Arkansas, been in the industry for more than 30 years  and a business owner for over 18. Mike is an AMI graduate, an ASE Master Technician, he belongs and contributes to Elite Worldwide and was recognized as the Arkansas NAPA/ASE tech of the year seven years in a row.  He’s been doing radio and TV over the last fifteen years talking ‘service’ in Little Rock. Mike helped start the Little Rock chapter of ASA and is currently an officer. Look for Mike’s other episode HERE.

 

Key Talking Points:

    • There are many interpretations of wage and hour and rules
    • As Mike sat through a department of labor (DOL) seminar on wage and hour he realized that he would take his newfound knowledge and further research and write a book specific to the service side of the aftermarket
    • The definition of compensatory duties is key. “Anytime spent benefiting the employer”
    • Look back is three years
  • Time tracking is one of the most important elements of getting through a DOL audit  
  • Mike show in the book that a 50¢ mistake can cost $60,000 in fines
  • In the wage and hour law section 206 (establish minimum wage) and 207 (establish overtime ‘premium pay’ rules) and 213 (establishes exemptions)  
    • In section 213B section 10 explains the auto dealer not the aftermarket. However, we believe it lends itself to our industry. Many shop owners get caught here. It specifically says it does not apply to commercial garages. A legal advisor in wage and hour is needed to keep you compliant.
  • Interpretation of hourly and exempt classification
  • To keep compliant Mike created a regular rate calculator (spreadsheet) to maintain compliance to the law. It calculates the regular and overtime rate
  • Audits. The DOL believes everyone is hourly unless an exemption applies. Exemptions is where the gray areas are.
    • Attorney’s are not allowed to be in interviews with your employees
    • Job Description will guide the interview
  • State laws will protect employee greater than federal
  • Mike’s book pertains to Federal law
  • Be very careful on Administrative exemptions 
  • His biggest discovery in researching the book is timekeeping and signed by the employee
  • Mike uses Time Clock Plus to track time
  • Mike helps you understand how a training rate figures into compensation

 

Link to get Mike’s Book Wage and Hour Compliance: https://www.industryessentials.net/

Resources:

  • Thanks to Mike Davidson for his contribution to the aftermarket’s premier podcast.
  • Link to the ‘BOOKS‘ page highlighting all books discussed in the podcast library HERE. Leaders are readers.
  • Leave me an honest review on iTunes. Your ratings and reviews really help and I read each one of them.

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This episode is brought to you by AAPEX, the Automotive Aftermarket Products Expo. AAPEX represents the $740 billion AAPEX_logo_CMYK_with_tagline-1440x621.jpglobal automotive aftermarket industry and has everything you need to stay ahead of the curve. With 2,500 exhibiting companies, you’ll see the latest products, parts, and technologies for your business. As a result, the event also offers advanced training for shop owners, technicians, warehouse distributors (WDs) and auto parts retailers, as well as networking opportunities to grow your business. AAPEX 2019 will take place Tuesday, Nov. 5 through Thursday, Nov. 7, at the Sands Expo in Las Vegas. Therefore, more than 48,000 targeted buyers are expected to attend, and approximately 162,000 automotive aftermarket professionals. They will be from 135 countries which are projected to be in Las Vegas during AAPEX 2019. For information, visit aapexshow.com

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  • Have you checked out Joe's Latest Blog?

         5 comments
      I recently spoke with a friend of mine who owns a large general repair shop in the Midwest. His father founded the business in 1975. He was telling me that although he’s busy, he’s also very frustrated. When I probed him more about his frustrations, he said that it’s hard to find qualified technicians. My friend employs four technicians and is looking to hire two more. I then asked him, “How long does a technician last working for you.” He looked puzzled and replied, “I never really thought about that, but I can tell that except for one tech, most technicians don’t last working for me longer than a few years.”
      Judging from personal experience as a shop owner and from what I know about the auto repair industry, I can tell you that other than a few exceptions, the turnover rate for technicians in our industry is too high. This makes me think, do we have a technician shortage or a retention problem? Have we done the best we can over the decades to provide great pay plans, benefits packages, great work environments, and the right culture to ensure that the techs we have stay with us?
      Finding and hiring qualified automotive technicians is not a new phenomenon. This problem has been around for as long as I can remember. While we do need to attract people to our industry and provide the necessary training and mentorship, we also need to focus on retention. Having a revolving door and needing to hire techs every few years or so costs your company money. Big money! And that revolving door may be a sign of an even bigger issue: poor leadership, and poor employee management skills.
      Here’s one more thing to consider, for the most part, technicians don’t leave one job to start a new career, they leave one shop as a technician to become a technician at another shop. The reasons why they leave can be debated, but there is one fact that we cannot deny, people don’t quit the company they work for, they usually leave because of the boss or manager they work for.
      Put yourselves in the shoes of your employees. Do you have a workplace that communicates, “We appreciate you and want you to stay!”
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