Car Dealership Employees Have Wage Rights in Ohio

Wage and hour laws in Ohio are very serious. Both Ohio and Federal Law dictate that employees must be paid at least minimum wage.

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These Laws Protect Your Rights

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Workers must also be classified correctly (independent contractor vs. employee) and paid overtime wages when earned.

These laws apply to car dealership employees as they would to others, however, there are some differences in the rules.

Wage Laws

The Fair Labor Standards Act dictates that employees who work over 40 hours in a week are entitled to overtime. However, there is an exception for car salespeople.

To be exempt, a salesperson must work for a dealership that does over $500,000 in sales and they must earn the bulk of their pay from commission. The problem is, many dealerships carry these exemptions to such an extreme that they end up violating the law.

Minimum Wage Requirement

A common tactic that car dealerships use to underpay their employees is paying commissions ONLY when a sale is made. That means salespeople are facing weeks with no pay when they do not make a sale. Since the FSLA requires that employees make at least minimum wage regardless of their job, this is a violation of the law.

Car salespeople typically work 50 to 60 hours per week. Though they are not entitled to overtime, they ARE entitled to minimum wage for ALL HOURS WORKED.

Other Types of Wage Hour Violations at Car Dealerships

The most common way car dealerships violate wage and hour laws is by failing to pay minimum wage for periods when no commission was earned. However, there are several other ways an employer may violate the law:

  • Employee Misclassification – There is a significant difference between how independent contractors and regular employees are viewed in the eyes of the law. If you work a schedule set by a supervisor and are required to be at a specific location to work, you are most likely an employee. A misclassification can cost you money in benefits and taxes.
  • Off the Clock Work – You are entitled to compensation for all hours you work. If you are asked to work “off the clock,” or to stay late to finish a task without pay, this is a violation.

Contact Us

Do you suspect your employer is breaking the law and treating you unfairly? If so, the experienced wage and hour attorneys at Tittle & Perlmuter want to hear the details of your case. Contact us for a free consultation.


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