Making the switch from hourly to flat rate.
Hello everyone and thank you for your time to read and or give me your input.
Our shop is currently in a rapid growth of changes from coming up from just me running the whole thing to actually having techs and service writers and hopefully parts shortly. Anyways I have been up and down about the switch from hourly to flat rate for the past couple of months. When I came from the dealer side. I worked at a hourly shop when I first started and when I switched to a new store and company it was flat rate. It didnt effect me much as it was dealer. Now in the independent world I know its a different game. I feel like its my final steps for the shop side and to make like easier with production and or I’m not paying for when they decide to be lazy one day. The following below is what I plotted out for our flat rate pay, but before you read I had a couple questions as well. 1. If you switch to flat rate should you increase their pay per hour? 2. If you have any information as far as labor laws in Washington state Id appreciate all feedback! Almost forgot the shop runs on 4x10s as well!Thank you for your time again!Flat Rate Change
Guaranteed 30 hours per week
Comebacks will not be billed
Warranty from failed component not installer error will be covered by shop hours based on warranty times.
Techs are responsible for MPI’s you will be given .3 for a inspection any upsales will continue to you.
If a Vehicle needs to be transferred based upon work load, times will be adjusted and be based upon where the vehicle is at or what is left on it. If there is a issue please notify service writer or manager.
Time card will change to posted carbon copy place all punches on tech sheets with this is to help track times.
We strongly recommend you record your times to verify any discrepancies between systems.
If quality of work diminishes or comebacks, MPI’s not being performed or Shotgunning diagnosis is found or becomes common practice. Disciplinary action will be taken write up or possibly let go.
Moving Cars will become no longer a item for technicians to do. The task will be performed by morning person opening up. If this is not working you will be allotted .8 for each day needed.
Once again we strongly recommend you record your times for any discrepancies!
Overtime pay will begin after 40 physical hours on premises begin. If you work 40 hours on thursday and stay 3 hours after. Your total physical labor on premises is 43 hours. Then if you flag 50 hours 3 of those paid 50 hours will be in overtime. So 47 hours of standard hourly rate and 3 hours of overtime will be applied. If you have any questions feel free to ask.
- You are required to take a minimum of 1 hour lunch with two 10 minute breaks.
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