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Automobile Finance Managers Who Work on Commission

In California, non-exempt automobile finance managers who only sell warranties and receive commission as part of their compensation are entitled to overtime pay for any hours worked over 8 hours in a day or 40 hours in a week. Overtimes are calculated as time and a half of the employee’s regular rate of pay.

The regular rate of pay for an automobile finance manager who only sells warranties and earns commission is calculated by dividing the total pay for the workweek, including commissions, by the total number of hours worked in that week. So, if an automobile finance manager worked 50 hours in a week and earned $1,000 in warranty commission, their regular rate of pay would be calculated as follows:

$1,000 ÷ 50 hours = $20 per hour

For any hours worked over 8 in a day or 40 in a week, the automobile finance manager would be entitled to overtime pay at a rate of $30 per hour ($20 regular rate of pay x 1.5).

It’s important to note that some automobile finance managers may be exempt from overtime pay if they meet the criteria for one of California’s white-collar exemptions, such as the executive exemption or the administrative exemption. However, this determination depends on a variety of factors, including the nature of their job duties and the amount of their earnings.

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