Get started

Free calculator

Flat-rate pay calculator

Turn a week of flagged hours into a paycheck: flat-rate earnings, spiffs, an hourly guarantee and the federal overtime premium. Then see what it works out to per hour actually worked.

This week

Clock-in to clock-out, not just time on jobs.

Paid instead of flag earnings on a slow week. Leave 0 for none.

Gross pay this week

$1,538.91

That's $34.98 per hour worked.

  • Flag earnings (46 hrs × $32.00)$1,472.00
  • Regular rate for overtime$33.45/hr
  • Overtime premium (4 hrs × ½ rate)$66.91
  • At this pace, per year$80,023

Federal method for piece-rate pay (29 CFR 778.111). Your state may require more, and this isn't legal or payroll advice.

Flag hours that add up on their own

In MyAutoShopPro every labor line is assigned to a technician, so flagged hours total themselves by pay period, and clock-ins from the bay tablet give you hours worked for the overtime math. Payroll and the time clock are on the Pro plan, and you can start free.

Start free Payroll for repair shops →

How flat-rate pay is calculated

Flag earnings = flagged hours × flat rate

Each labor operation on a repair order carries a time, usually from a labor guide. The technician who does the work flags that time whether the job took longer or shorter. Add up the week's flagged hours, multiply by the tech's flat rate, add spiffs or bonuses, and you have straight-time earnings.

Overtime on flat rate

Flat rate doesn't switch off overtime. For non-exempt technicians, federal law treats flat-rate pay like piece-rate pay:

Regular rate = straight-time earnings ÷ total hours worked

Overtime premium = ½ × regular rate × hours over 40

The flagged hours already paid the straight time for every hour, so overtime adds the extra half. A tech who flagged $1,350 of work over 50 hours worked has a regular rate of $27, and is owed another $13.50 for each of the 10 overtime hours: $135 more. Hours worked means clocked-in time at the shop, not time on jobs, which is one more reason to keep a real time clock.

Technicians at car dealerships are frequently exempt from federal overtime under a specific FLSA exemption. Technicians at independent repair shops generally are not. States can add to all of this, so confirm with your state labor department.

Effective hourly rate: the number techs compare

Flat-rate techs talk about their flat rate, but the number that matters for comparing jobs is pay divided by hours actually at the shop. A $34 flat rate at a shop that keeps the bays full can beat a $38 rate at a shop where techs sit waiting for approvals. If you're the owner, that's your recruiting pitch. The technician efficiency calculator shows how many flagged hours your shop is actually producing per paid hour.

Flat-rate FAQ

Flat-rate pay questions

Q1How does flat-rate pay work for mechanics?

A flat-rate technician is paid a set amount for each labor hour they flag (bill), regardless of how long the job actually takes. If a brake job pays 2.0 hours and the tech finishes in 1.3, they're paid for 2.0. If it takes them 3.0, they're still paid for 2.0. Fast, accurate technicians earn more than they would hourly; slow weeks and comebacks cost them.

Q2Do flat-rate technicians get overtime?

Under federal law, most technicians at independent repair shops are non-exempt and are owed overtime for hours worked over 40 in a week, including on flat rate. The federal method treats flat rate like piece-rate pay: divide the week's straight-time earnings by total hours worked to get the regular rate, then pay half that rate again for each hour over 40. Mechanics at car dealerships are often exempt under FLSA section 13(b)(10)(A). Several states, including California, have stricter rules. Check with your state labor department or a payroll professional.

Q3What is a minimum guarantee in flat-rate pay?

A guaranteed hourly rate for every hour worked, paid when a technician's flagged earnings come in lower. It protects a tech's income on a slow week. This calculator pays whichever is higher, flag earnings or the guarantee, which is how most guarantees are written.

Q4Is flat-rate pay legal?

Yes, flat-rate pay is legal in every state, with conditions. Total pay for the week has to work out to at least minimum wage for every hour worked, overtime rules still apply to non-exempt employees, and some states require separate pay for rest breaks and non-productive time. California's piece-rate rules are the best-known example.

Q5What is a good flat rate per hour for a technician?

It depends on the market, the technician's certifications and the shop's labor rate. A common rule of thumb puts the flat rate at roughly a quarter to a third of the shop's posted labor rate. Our labor rates by state pages show local technician wages from BLS data to benchmark against.

Free tools

More free shop calculators