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Recent Wages Case Favorable to Automotive Repair Workers

4/6/2013

 
California wages and compensation laws for car mechanics
The recent case Gonzalez v Downtown LA Motors, LP (2013) is an important ruling on the wages and compensation law, favorable to employees of automotive repair shops and clarifying the California minimum wage law.   In that case, the employer - the automotive dealership that sold and serviced Mercedes Benz vehicles compensated its service technicians on a piece rate basis. This means that the technicians were paid on the basis of repair tasks completed and they were paid from $17 to $32 per task, depending on the technician's experience for each "flag hour" that a technician accrued actually performing those tasks. In addition to tracking those hours, the dealership also kept track of all the time that technicians spent on work site, whether they were working or were just present at their workplace. At the end of each pay period, the employer calculated how much each technician would earn if they were paid minimum wage, and if their earnings fell below that number, they would supplement the flag hour earnings to meet the minimum wage requirements.   

The technicians filed a lawsuit alleging that they should be paid at least minimum wage separately for each hour that they are present at the workplace and not performing the tasks in addition to their per-task compensation. 
The court sided with the employees, noting that California law requires that employees be compensated for each hour worked.   In its discussion, the court illustrated why the employer's manner of compensation in this case resulted in unfair compensation by way of example:  one worker who completes 4 hourly tasks at $20/task would earn $80 after 4 hours; the second worker who works the same task hours but remains on the job for additional 4 hours after completing the tasks would also be paid $80. However, averaging the wages of both technicians over an 8 hour day would show that the second technician was only paid $10/hour. This would be in contradiction of California Labor Code section 223, where the employee would not actually be paid for all hours worked - all the hours that employee had to be present at the workplace and was not free leave or engage in his personal matters. `


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We represent employees and employers in employment and wrongful termination cases, as well as victims of serious injuries in San Francisco, Oakland, Sacramento, San Jose, Palo Alto, San Mateo and throughout Northern California. We all represent businesses and start-ups in a wide range of business and employment issues and disputes. 


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  • Home
  • Employment Law
    • Wrongful Termination >
      • At-Will Employment
      • Termination After Unfair Warnings and Write-Ups
      • Union Grievance, Workers Comp and Wrongful Termination
      • Labor Code 970 Claims
      • Promissory Estoppel and Employment Contracts
      • Implied Contract Claims
    • Discrimination >
      • Proving Discrimination
      • Age Discrimination
      • Disability Discrimination >
        • Protected Disabilities
        • Medical Leave / Disability Accommodations
        • Job Reassignment As A Disability Accommodation
        • SSI Disability Benefits and Your Court Case
        • Sample Request for Reasonable Accommodation
      • Pregnancy Discrimination
      • Race Discrimination
      • Sample Discrimination Complaint
      • DFEH and EEOC Investigations
    • Retaliation >
      • How to Prove Retaliation
      • Dealing with Retaliation While Still Employed
      • Retaliation for Complaining
      • Whistleblower Retaliation
    • Harassment
    • Defamation at Workplace
    • Prof. License Defense
    • Leaves of Absence >
      • Medical Leave as Reasonable Accommodation
      • FMLA Entitlement and Reinstatement to Work
      • CFRA Leave
      • Employers' FMLA Notice Obligations
      • Paternity Leave (FMLA)
      • Sample FMLA Leave Request
    • Wages / Overtime Claims >
      • Wage Claims
      • Employee or Contractor
      • Exempt / Non-Exempt >
        • Admistrative Exemption
        • IT Support Specialists Compensation
        • Computer Professional Exemption from Overtime
        • Recruiters / Account Executives Exemption
        • Complaining About Being Misclassified
      • Vacation Pay / PTO
      • On-Call Time Compensation
      • Deductions fr. Commissions
    • Unempl. Benefits Appeals >
      • Tips for EDD Phone Interview
      • Unemployment Benefits Appeal Hearing Representation
      • CUIAB Hearing Tips
    • Employment Law Blog
    • For Employers
  • Personal Injury
    • Five Tips For Injury Cases
    • Slip-and-Fall Injuries
    • Assault and Battery
    • Recorded Statements
    • Repairing Your Vehicle
    • Unpaid Medical Bills
    • Injury Law Blog
    • Medical Malpractice
    • Police Excessive Force
  • Practice Areas
  • About
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  • Submit Case
  • Contact
  • Resources
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    • Statutes of Limitations
    • Healthy Litigation Mindset
    • Trial Tips
    • Working Remotely
    • How To Find The Right Lawyer For Your Case