New California Compensation Law? - BodyShop Business

New California Compensation Law?

Is there a new California law that states all body men and mechanics are required to use a timecard?

Is there a new California law that states all body men and mechanics are required to use a timecard?

Question answered by Cory King, partner with Fine, Boggs & Perkins LLC.

The short answer is no, there is not a new law like that. But this question/answer undoubtedly was sparked by a related and much deeper issue, and the REAL question California shop owners/managers should be asking is, “Am I paying my flat-rate and commissioned employees properly?”

Recent legal developments had a significant impact on how shops must compensate technicians and other production employees. This is a very complicated and sensitive issue that does not lend itself to a discussion in this venue, but there is a relatively simple solution.

Beware that there is a lot of misinformation being circulated in the industry press and online, some of it even intentionally planted by those who wish to cause the industry harm by stirring up litigation. It’s very important that you get competent legal advice and accurate information on this issue from an expert before taking corrective action or making changes to your compensation programs. Contact me at (760) 891-1240 or [email protected] if you have questions. I have represented collision repairers for many years and am very familiar with the current issues regarding flat-rate and commission compensation. 

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