A Federal Court of Appeals recently ruled that auto mechanics paid on a flat-rate system are exempt from the overtime requirements of the Fair Labor Standards Act (). The court found that the flat-rate system used in the auto repair industry is akin to a commission system for FLSA purposes. The case opens the door for some employers to restructure their pay system to avoid costly overtime.
What is the FLSA?
The FLSA establishes the federal minimum wage and
One such exemption is for retail and service employees. The FLSA provides that an employer does not have to pay overtime to a retail or service employee if:
- The regular rate of pay is in excess of one-and-...(register to read more)