2018 Special Tax Information

Dec 17, 2018 | Member News

Compliance with Minimum Wage and Overtime Requirements

Back pay, penalty, and interest for dealers who have not properly complied with the federal wage and hour laws and
regulations can result from an audit situation. The following are some of the troublesome areas. Specific circumstances of individual employees should be reviewed with dealership legal advisors.

General Rule: Unless a specific exemption exists, an employee must be paid at least the federal minimum wage ($7.25 per hour) and overtime at 150% of the normal rate for hours worked in excess of 40 in a week. The PA state minimum wage is also $7.25 per hour unless a specific exemption exists.

To be exempt from overtime, all of the requirements in each category must be met to qualify for that particular exemption.

  • Salesperson Exemption
  • Commission Sales Persons
  • Salaried Employees
  • Mechanics and Parts Persons

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