For decades, hourly pay was the industry standard in repair shops across the country. It gave techs something rare in this business—predictability. You knew that if you showed up and did your job, you’d get a steady paycheck—even if the day was full of slow approvals, bad parts, or jobs that took longer than they should’ve.
But that’s changing—fast.
More and more shops are moving to flat rate pay, and if yours hasn’t made the switch yet, odds are it’s coming. This isn’t just a new way to punch a clock. It’s a complete overhaul of how your time, skill, and hustle are valued.
Here’s everything you need to know before you get blindsided.
1. WHY SHOPS ARE SWITCHING TO FLAT RATE
Let’s not sugarcoat it: this shift helps the shop more than it helps you.
Here’s why shop owners love flat rate:
- Risk shifts to the tech. If a job takes longer than expected, you eat the time—not them.
- Dead time disappears. No more paying techs to stand around waiting on parts or a service writer who’s MIA.
- Higher output. Flat rate pushes techs to work faster, cranking up car count and, in turn, shop profits.
Example: You get paid 1.8 hours to replace a water pump. Whether you knock it out in 1.2 or battle rusted bolts for 3 hours, you still get 1.8. The shop charges the customer a flat fee and keeps the difference—so the faster you are, the more they make too.
Bottom line: Flat rate is a win for management—and a gamble for you.
2. HOW FLAT RATE ACTUALLY HITS YOUR PAYCHECK
The first time you see your paycheck on flat rate, it might feel like a joke—unless you’re in a shop with high volume and smooth workflow.