What is pay Per flag hour?

What is pay Per flag hour?

This compensation practice pays based on the number of hours it should take to complete a repair job. Flag rate pay can work out well for a skilled and quick mechanic. For the shop, using flag time pay allows the matching of mechanic pay to what the customer pays for a repair.

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.

How long does flag time work with mechanics?

The actual time to complete the work may be more or less than the hours determined as the flag rate. By this standard, a busy and skilled mechanic may complete and be paid for more than eight hours in an eight-hour workday.

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 does the FLSA apply to auto mechanics?

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.

How many hours does a mechanic have to work to get paid?

By this standard, a busy and skilled mechanic may complete and be paid for more than eight hours in an eight-hour workday. But if there is not enough work coming in, the mechanic may not generate enough flag hours to cover the number of hours he was actually at work.

How are flag hours calculated for a technician?

A technician who completes a repair task accrues the number of flag hours assigned to the task, regardless of how long the task actually took to complete. Technician pay is then calculated by multiplying the number of flag hours accrued during the pay period by the technician’s hourly flag rate.

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 does flag time work with auto mechanics?

Mechanics often are paid based on flag time work. This compensation practice pays based on the number of hours it should take to complete a repair job.

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.