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Run the Payroll Fee Auditor →Blog · Payroll Management · Auto Dealership
Auto Dealerships: Managing Part-Time Worker Payroll (2026)
Part-time payroll in auto dealerships carries the same withholding and overtime rules as full-time, and part-time hours count toward the ACA employer mandate at 120 hours a month per full-time equivalent. BEG: $45 per employee per month inside the payroll software you already use, live in 3 to 5 days.
Rules that matter for part-time auto dealership staff
Section 13(b)(10)(A) of the FLSA exempts salesmen, partsmen and mechanics who are primarily engaged in selling or servicing automobiles, trucks or farm implements at a nonmanufacturing dealership from overtime pay, but not from minimum wage. The exemption applies regardless of the dealership's annual dollar volume of sales.
No dealership employee under 18 may drive or serve as an outside helper on a motor vehicle on a public road, except that 17-year-olds who meet specific requirements may drive vehicles that do not exceed 6,000 pounds gross vehicle weight for limited amounts of time. Minors under 16 may work only during particular times and limited hours, and minors under 14 may not be employed.
The arithmetic
Overtime is owed after 40 hours in the workweek regardless of part-time status, and a part-time employee who picks up shifts across two roles has their regular rate blended across both. For the ACA, monthly hours of all non-full-time employees are pooled and divided by 120 to produce full-time equivalents; 60 part-time employees at 60 hours a month are 30 FTEs. For FMLA, a part-time employee counts as one employee toward the 50 threshold and is eligible personally only after 1,250 hours in the prior 12 months. At the BLS May 2025 national median for automotive service technicians and mechanics, $50,620 a year or about $24 an hour, a 20-hour week is $487 before tax.
The rules behind this page, with sources
General information, not legal advice. Every rule below was read on the agency page linked next to it.
- Section 13(b)(10)(A) of the FLSA exempts salesmen, partsmen and mechanics who are primarily engaged in selling or servicing automobiles, trucks or farm implements at a nonmanufacturing dealership from overtime pay, but not from minimum wage. The exemption applies regardless of the dealership's annual dollar volume of sales. [29 CFR 779.372]
- No dealership employee under 18 may drive or serve as an outside helper on a motor vehicle on a public road, except that 17-year-olds who meet specific requirements may drive vehicles that do not exceed 6,000 pounds gross vehicle weight for limited amounts of time. Minors under 16 may work only during particular times and limited hours, and minors under 14 may not be employed. [DOL Fact Sheet #11]
Read the full guide to ACA reporting and the employer mandate, and the rest of the auto dealership payroll library.
Managed Payroll, Handled.
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Frequently Asked Questions
Do part-time salespeople at an auto dealership count toward the ACA 50-employee test?
Yes, as full-time equivalents: their monthly hours are pooled and divided by 120. That is why the count is run from payroll hours every year rather than from headcount.
Is overtime owed to a part-time auto dealership employee?
Yes, after 40 hours in a workweek, at time and one half on the regular rate. Part-time status changes benefits eligibility, not the overtime rule. Section 13(b)(10)(A) of the FLSA exempts salesmen, partsmen and mechanics who are primarily engaged in selling or servicing automobiles, trucks or farm implements at a nonmanufacturing dealership from overtime pay, but not from minimum wage.
What does managed payroll cost for an auto dealership?
$45 per employee per month, all-inclusive, inside the payroll software you already use, with no monthly minimum. Front-end and back-end commission structures, flat-rate tech pay and F&I chargebacks are configured at setup, not billed as add-ons.
Related Resources
Anthony leads payroll solutions at Business Executive Group, a national managed payroll firm serving businesses across industries including Auto Dealerships. BEG manages payroll at $45 PEPM, all-inclusive, with deep expertise in compliance, multi-state filing, and industry-specific payroll requirements. Get instant pricing at beghr.com.
Authoritative source: U.S. Department of Labor: Wage and Hour Division
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