tech pay

[brian l]

heres a question on warranty receivables and flat rate tech time. Lets say work order was billed for say 1.2hours flat rate and parts ammount X. Warranty paid work order labor 1.4hours flat rate. By law arent you supposed to update tech payroll for for .2 difference and not show it was GP at the end of the month?

[robc]

By law - no, not that I am aware of - but these kind of laws are done state by state - so who knows for sure. Union rules might call for such an adjustment.

That being said warranty payment and tech pay are actually not legally connected. Every manufacturer even specifically states that their payment system has nothing to do with what the dealer pays the tech. In other words, lets say for that job the factory instead said, "Mr./Ms. Dealer, we are going to pay you $125 labor to perform that repair," what the dealer decides to pay the technician is totally up to them and the agreement they have with the technician.

In reality, we all know that the dealer bases the techs pay rate on what the factory pays.

I wouldn't pay it because I generally don't back flag a technician if the time went the other way - and in my experience of looking at warranty claims for hundreds of dealers over the past 15 years is that the time it pays short vs. paying more is at least 2 to 1. If a tech wants the positive then they need to take the negative - and they'll find that doesn't work out to their benefit.

But your experience might be different.

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** Rob, Editor Dealersedge/WD&S **
Help is only a message post away!
robc@dealersedge.com

[chevytech]

I will have to agree with you. All I require is that I am paid (for warranty) what LTG pays. If GM kicks more to the dealer, so be it. I have LTG and Warranty Wizard on my computer and keep a close eye on it. Like you said, there are positives and negatives. I just want what the book calls for and let the rest ride.

[POPEYE]

I guess it's about perspective. If the situation were similar except, let's say the service advisor paid the wrong labor op and the claim paid .2 less than was submitted for, in most cases, we know what would happen to the tech, don't we ? Like you said, if it is what he deserves for the job . . .