Independent shops don’t get the dealership overtime exemption, so a flat-rate week has to survive real math: flag pay as per-unit codes, overtime on the weighted-average rate when flag and hourly mix, and a minimum-wage check on actual clock hours at federal, state, and local levels. WageTime is payroll built to run that math for $50 a month plus $10 per person paid, with every tax filed automatically. The spreadsheet between your shop-management system and your payroll can finally retire.
Census data counts about 165,000 US repair establishments averaging 5.5 employees each. That is a working owner and a service advisor doing payroll after close, on some of the hardest pay math in small business: flag hours, hybrid guarantees, spiffs, and commissions, all under overtime rules written for somebody else.
Your shop-management system knows every flagged hour by tech and repair order. Your payroll knows none of it. Between them sits a spreadsheet where somebody multiplies flags by rates, guesses at overtime, and re-types the result into payroll. Every period, every tech, every transposed digit.
The overtime exemption dealership techs work under stops at the franchise line; courts have declined to extend it to independent shops. The retail commission exemption that might apply instead has three strict conditions, and flat-rate pay doesn’t automatically count as commission. Whether any of it fits your shop is a question for you and your counsel. What isn’t in question: when overtime applies, somebody has to compute it correctly.
A tech who turns 22 flag hours while clocking 41 still has to average minimum wage across all 41. The Labor Department’s automotive guidance names the classic violations: piece-rate pay below minimum wage and straight-time-only flag pay past 40 hours. Its recent shop cases ran $40,000 to $80,000 in back wages. Right now that floor check happens in your head, if it happens.
Tire spiffs, inspection bonuses, an AC-season push, the advisor’s commission on labor gross: they land whenever they land, and each one still owes correct withholding. Most shops either batch them into next month’s check or cut a side check and let the bookkeeper sort it out in January.
The ASE cert that expires next month, the EPA 609 card for the new hire, a child-support order on a tech’s wages, the tool account he’s paying down, the advisor’s commission sheet. In a shop of six, every one of those is the owner’s job at 7pm.
Each of these gets a real product screen below, shown with sample shop data.
WageTime runs flag hours as per-unit pay codes: so many flag hours at the tech’s rate, entered as a pay line, not reverse-engineered in a spreadsheet. Hourly time for shop cleanup, training, or a diag day runs alongside at its own rate, and when flag and hourly mix in one week, overtime computes automatically on the weighted-average regular rate across everything earned. Hybrid plans are just two codes in the same run: an hourly base plus a per-flag-hour production bonus. Minimum-wage processing runs underneath it all at federal, state, and local levels, on actual hours worked. Weekly pay costs nothing extra, because payroll runs are unlimited.
| Line | Quantity | Rate | Amount |
|---|---|---|---|
| Flag hours per-unit code | 38.4 hrs | $30.00 | $1,152.00 |
| Shop time hourly code | 6.0 hrs | $18.00 | $108.00 |
| Weighted-average regular rate all earnings ÷ 46 clock hrs | 46.0 hrs | $27.39 | $1,260.00 |
| Overtime premium 6 OT hrs at half rate | 6.0 hrs | $13.70 | $82.17 |
Replaces the flag-times-rate spreadsheet, and the overtime guess nobody wants to defend in an audit.
Because pay rides on flags but the law rides on hours: the minimum-wage floor and the overtime threshold both key to actual time worked, so a flat-rate shop needs clock records it can stand behind. WageTime’s mobile time clock stamps every punch with GPS, geofenced to the shop with a configurable radius, and approved hours flow straight into the run. Timesheets carry employee attestation, audit-ready change logs, and locking after approval, with break and meal rules and rounding options built in. When the Labor Department asks how a flag-hour week cleared the floor, the answer is a report, not a reconstruction.
| Tech | Clock hrs | Flag hrs | Effective rate | Status |
|---|---|---|---|---|
| Marcus B. | 46.0 | 38.4 | $27.39 | OT due |
| Dana K. | 40.0 | 44.6 | $33.45 | Clear |
| Leo T. | 41.5 | 22.1 | $15.98 | Below $16.50 floor |
| Priya S. | 38.0 | 36.9 | $26.71 | Clear |
Replaces the floor check that lives in the owner’s head, and the clock hours nobody wrote down.
Tekmetric, Shopmonkey, Mitchell 1, Shop-Ware, AutoLeap: whatever runs your ROs already holds flagged hours by tech. We import clock and flag hours so there’s no double entry; tell us your shop-management system on the demo and we’ll confirm the exact flow for your setup. Inside WageTime, hours and pay code to jobs with cost codes up to 40 characters, adjustable to your RO numbering, so labor cost reads by job instead of one blob. Finished payroll posts to QuickBooks mapped by department, and a configurable GL export covers everything else. The period-end ritual of export, reformat, re-type goes away, and with it the transposed digit that shorted a tech’s check.
| Tech | Clock hrs | Flag hrs | Job code | Status |
|---|---|---|---|---|
| Marcus B. | 46.0 | 38.4 | RO-8841 brakes & rotors | Ready |
| Dana K. | 40.0 | 44.6 | RO-8853 transmission R&R | Ready |
| Leo T. | 41.5 | 22.1 | RO-8860 diag, electrical | Ready |
| Priya S. | 38.0 | 36.9 | RO-8862 timing chain | 1 RO open |
Replaces the export-reformat-retype ritual, and the two-week argument that starts with one wrong digit.
What do you do with a tire spiff that clears on a Wednesday? Run it. Payroll runs are unlimited, so spiffs, contest money, and season bonuses go out in-cycle or off-cycle at no extra cost, with every tax withheld and filed automatically instead of a cash side check the bookkeeper meets in January. Service advisor pay runs in the same engine: percentage-based comp settles through tiered commission structures, so a base-plus-commission advisor plan is configuration, not a monthly spreadsheet. And when a tech’s wages carry a child-support order, WageTime handles the garnishment end to end: setup, calculation against disposable earnings, payee disbursement, and child-support payments remitted by ACH.
| Person | Earning | Basis | Amount |
|---|---|---|---|
| Carla M. advisor | Commission | labor gross tier 2 | $1,428.00 |
| Marcus B. | Tire spiff | 12 units at $5.00 | $60.00 |
| Dana K. | AC-season bonus | flat amount | $250.00 |
| Leo T. | Inspection spiff | 9 units at $4.00 | $36.00 |
Replaces the side-check drawer, and the advisor commission sheet that gets negotiated line by line every month.
WageTime tracks credentials and licenses on the employee record with the documents attached: ASE certifications, EPA 609 cards, state inspection licenses, whatever your state and your insurer expect, with recurring 30, 60, and 90-day expiration alerts so a lapse never surprises you mid-inspection. The toolbox side of the desk is covered too: equipment and tool assignments are tracked to each tech with return tracking, and paycheck deductions for tool accounts run where state law permits them. Techs get a self-service portal and mobile app for paystubs, W-2s, and PTO, which means they stop asking the front desk.
| Tech | Credential | Expires | Status |
|---|---|---|---|
| Marcus B. | ASE Master A1-A8 | Mar 2028 | Current |
| Dana K. | EPA 609 | card on file | Current |
| Leo T. | State inspection license | Aug 14 | 30-day alert sent |
| Priya S. | ASE A6 Electrical | Sep 30 | 60-day alert queued |
Replaces the whiteboard of expiration dates, and the tool-account ledger in the drawer.
At independent shops, usually yes: the dealership mechanic exemption doesn’t extend past franchised dealers, and the retail commission exemption has strict conditions that flat-rate plans don’t automatically meet. Whether an exemption fits your shop is a decision for you and your counsel. When overtime applies, WageTime computes it on the weighted-average regular rate whenever a tech works two or more rates in a week, automatically.
Earnings still have to average at least minimum wage across all hours actually worked that week. WageTime runs minimum-wage processing at federal, state, and local levels against real clock hours, so a thin-flag week gets caught by the system instead of by a Labor Department auditor. Federal enforcement in auto repair has run $40,000 to $80,000 in recent back-wage cases.
We import clock and flag hours so there’s no double entry. Tell us your shop-management system on the demo and we’ll confirm the exact flow for your setup. Inside WageTime, hours code to jobs with cost codes adjustable to your RO numbering, and time tracking flows straight into the run.
Yes. Percentage-based comp settles through tiered commission structures, so an hourly or salary base with a commission layer on labor gross is configuration, not a spreadsheet. Spiffs and contest bonuses for techs run in the same engine, in-cycle or off-cycle at no extra cost, with withholding applied and every tax filed automatically.
California treats flat-rate techs as piece-rate workers, with separately paid rest periods and nonproductive time itemized on the stub. WageTime’s pay codes run hourly and per-unit earnings side by side in one check, which is the shape those rules require. Bring your pay plan to the demo; how the rules apply to your shop is a question for you and your counsel.
$50 a month for the company plus $10 per person actually paid that month: $110 for a six-person shop, with unlimited runs, so weekly pay and Wednesday spiff runs cost nothing extra. Filings, W-2s, and 1099s are included. Run the tire store as its own LLC? Each company keeps its own EIN, with one login and combined reporting.
Last week’s flagged hours by tech, the clock hours beside them, and your advisor’s commission plan. Twenty minutes with a payroll specialist on a live demo shop: you’ll watch a mixed flag-and-hourly week compute its own overtime, see the minimum-wage check run, and get a straight answer on whether your pay plan fits.
Book a 20-minute demo