Is an employee exempt from overtime as a service writer?

UPDATED: Oct 1, 2022

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Is an employee exempt from overtime as a service writer?

The employee is a service writer at a mechanic shop, not a car dealership, and the employer company is an LLC. If the employee is paid a base hourly rate of $12/hour plus a commission rate of 2 of weekly sales not averaging to 1/2 of the employees wages, is that employ exempt from

overtime pay if they consistently work over 40 hours a week? Is an employer allowed to dock said employees

pay if they work less than 40 hours a week but do not report the overtime hours? If said employee is paid their $12/hour base pay rate for 48 hours plus the 2 commission, is the employer required to pay the employee

for the 8 hours at the overtime rate?

Asked on June 15, 2018 under Employment Labor Law, Kentucky


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

If the employee is paid a base *hourly* rate (not an annual salary) and the employer docks pay if they work fewer hours, then the employee is, from the law's point of view, an hourly employee. If he is hourly, he MUST be paid overtime when he works more than  40 hours per week: all time over 40 hours is paid at the overtime rate of time-and-a-half. While there are other requirements (based on the nature of the job) to be exempt from overtime, the first and most basic requirement is the employee must be paid an annually salary, not wages based on hours worked. If you are not salaried--and if the employer alters pay based on hours worked, you are not salaried--you are not exempt and you must be paid overtime.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption