RR 466: Mike Davidson – Compliance to Wage and Hour Rules for Aftermarket Professionals

Mike Davidson is from Parkway Automotive in Little Rock, Arkansas, been in the industry for more than 30 years  and a business owner for over 18. Mike is an AMI graduate, an ASE Master Technician, he belongs and contributes to Elite Worldwide and was recognized as the Arkansas NAPA/ASE tech of the year seven years in a row.  He’s been doing radio and TV over the last fifteen years talking ‘service’ in Little Rock. Mike helped start the Little Rock chapter of ASA and is currently an officer. Look for Mike’s other episode HERE.


Key Talking Points:

    • There are many interpretations of wage and hour and rules
    • As Mike sat through a department of labor (DOL) seminar on wage and hour he realized that he would take his newfound knowledge and further research and write a book specific to the service side of the aftermarket
    • The definition of compensatory duties is key. “Anytime spent benefiting the employer”
    • Look back is three years
  • Time tracking is one of the most important elements of getting through a DOL audit  
  • Mike show in the book that a 50¢ mistake can cost $60,000 in fines
  • In the wage and hour law section 206 (establish minimum wage) and 207 (establish overtime ‘premium pay’ rules) and 213 (establishes exemptions)  
    • In section 213B section 10 explains the auto dealer not the aftermarket. However, we believe it lends itself to our industry. Many shop owners get caught here. It specifically says it does not apply to commercial garages. A legal advisor in wage and hour is needed to keep you compliant.
  • Interpretation of hourly and exempt classification
  • To keep compliant Mike created a regular rate calculator (spreadsheet) to maintain compliance to the law. It calculates the regular and overtime rate
  • Audits. The DOL believes everyone is hourly unless an exemption applies. Exemptions is where the gray areas are.
    • Attorney’s are not allowed to be in interviews with your employees
    • Job Description will guide the interview
  • State laws will protect employee greater than federal
  • Mike’s book pertains to Federal law
  • Be very careful on Administrative exemptions 
  • His biggest discovery in researching the book is timekeeping and signed by the employee
  • Mike uses Time Clock Plus to track time
  • Mike helps you understand how a training rate figures into compensation


Link to get Mike’s Book Wage and Hour Compliance: https://www.industryessentials.net/


  • Thanks to Mike Davidson for his contribution to the aftermarket’s premier podcast.
  • Link to the ‘BOOKS‘ page highlighting all books discussed in the podcast library HERE. Leaders are readers.
  • Leave me an honest review on iTunes. Your ratings and reviews really help and I read each one of them.


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This episode is brought to you by AAPEX, the Automotive Aftermarket Products Expo. AAPEX represents the $740 billion global automotive aftermarket industry and has everything you need to stay ahead of the curve. With 2,500 exhibiting companies, you’ll see the latest products, parts, and technologies for your business. As a result, the event also offers advanced training for shop owners, technicians, warehouse distributors (WDs) and auto parts retailers, as well as networking opportunities to grow your business. AAPEX 2019 will take place Tuesday, Nov. 5 through Thursday, Nov. 7, at the Sands Expo in Las Vegas. Therefore, more than 48,000 targeted buyers are expected to attend, and approximately 162,000 automotive aftermarket professionals. They will be from 135 countries which are projected to be in Las Vegas during AAPEX 2019. For information, visit aapexshow.com

About the author, Carm Capriotto, AAP

Carm is the founder and host of the Remarkable Results Radio Podcast and the pioneer of automotive aftermarket podcasts. Carm calls on his years of experience in the aftermarket to bring engaging stories from his guests.

Listen to raw, unfiltered, honest, and sincere stories that include insights, trends, best practices, and expertise. Each interview brings an opportunity to learn one new thing through the stories of personal achievement. Many podcast guests tell their story of transformation from working in their business to working on it.

As host of over 1,000 episodes, Carm uses his enthusiasm and passion for the aftermarket especially the service sector to take his listeners on a journey showcasing successful service professionals’ paths to Remarkable Results. He also enjoys interviews with aftermarket industry thought leaders who bring their industry perspectives to his listener.

Follow the podcast on your favorite podcast listening app and always listen to learn just one thing!