Question presented

“Parts and support” is an organizational label, not a legal category. One dealership may group parts-counter employees, drivers, porters, detailers, BDC representatives, office staff, and vendor crews even though their duties, employer entities, locations, schedules, and pay formulas differ.

The question is which path applies to each person and period. That requires a roster: employer, location, establishment activity, weekly duties, promised compensation unit, and available work and expense records.

Rule architecture

FLSA section 13(b)(10) contains a federal overtime route for a qualifying “partsman” at a qualifying nonmanufacturing establishment primarily engaged in selling vehicles to ultimate purchasers. Section 779.372 ties the category to actual parts functions and defines “primarily engaged” as more than half of the employee’s time in the workweek. A title is insufficient. Requisitioning, stocking, and dispensing parts must be separated from delivery, cashiering, clerical, cleaning, and other work using credible weekly evidence.

That partsman route affects federal overtime only. Federal minimum wage, hours-worked principles, and record duties remain. Porters, detailers, BDC agents, shuttle drivers, office employees, and vendor personnel require their own coverage analysis. Any different federal overtime route needs its own predicates. When federal overtime is due, mixed and incentive pay must be classified for the Part 778 regular-rate calculation.

California does not inherit the federal result. Its daily and weekly overtime, minimum-wage, time, break, record, and expense rules remain separate. Dealer- or gas-station-connected repair generally routes to Wage Order 7, while a standalone repair garage generally routes to Wage Order 9. Multiple entities may share a campus, so an address is not decisive.

The next classification is the pay unit. A parts-sales percentage may be commission compensation, a per-delivered-part amount may be piece-rate compensation, and an appointment or CSI payment may instead be a production bonus or another incentive. The formula, earning event, and relation to a sale or unit matter more than the earning-code name. When piece-rate work occurs in a California pay period, Labor Code section 226.2 adds separate rest/recovery and other-nonproductive-time requirements and specified records. It does not turn every minute without a unit into nonproductive time; hours worked and direct relation to the piece-paid activity come first.

Time analysis is role-specific. Opening the parts cage, pre-punch car movement, required logins, post-shift calls, shuttle inspections, training, and closing inventory may be work depending on control and knowledge. System events establish activity at points, not continuous intervals. Meal records and rest evidence remain separate; a missing rest punch does not show a missed rest, and any section 226.7 premium requires its own provision and rate analysis.

Worker identity supplies another branch. Labor Code section 2775 generally starts with California’s ABC framework, subject to statutory exceptions and any alternative test they invoke. A 1099, vendor corporation, or invoice is not itself the test. Vendor status and any client-employer route are distinct inquiries.

Expenses do not collapse into wage classification. Labor Code section 2802 addresses necessary expenditures caused by duties or direction, and section 2804 prevents contractual waiver of that protection. Wage Orders 7 and 9 separately address uniforms and tools. Twice the 2026 statewide minimum is $33.80, but the hand-tool rule still depends on the governing order, actual earnings, item category, and apprenticeship facts. Shop equipment, safety items, phones, and mileage require separate treatment.

Decision sequence

  1. Build a person-level roster. Record the employing and paying entity, location, manager, schedule, job label, actual recurring duties, pay method, and any vendor relationship.
  2. Classify the establishment. Determine the dealership or standalone connection, principal business activity, ultimate-purchaser sales facts, and Wage Order 7 or 9 route.
  3. Measure weekly duties. Use representative ordinary and unusual weeks to allocate parts functions and non-parts work. Preserve variation instead of averaging different employees together.
  4. Test federal routes. Apply section 13(b)(10) only to a qualifying partsman and establishment. Test any other federal overtime theory separately; retain minimum-wage, time, and record analysis.
  5. Classify every pay component. State its unit, formula, earning event, payment timing, and reversal condition before selecting hourly, piece-rate, commission, bonus, or mixed-plan rules.
  6. Reconstruct work and breaks. Align raw time with schedules, access, DMS, CRM, phones, vehicle systems, delivery records, and manager knowledge. Separate meal proof from rest proof.
  7. Test identity and expenses. Apply the correct employee-contractor branch, then trace each required item or trip from direction and receipt through reimbursement and payroll.

Evidence map

Establishment and duty proof includes entity records, licenses, sales mix, descriptions, interviews, schedules, and sampled weekly activity. Descriptions cannot replace actual-duty evidence. Raw punches and edits, meal entries, access logs, DMS or CRM events, calls, telematics, and alarm data can corroborate sequence and knowledge without proving every minute between events.

Role-specific output records include parts tickets, inventory scans, delivery logs, detailed vehicles, appointments, warranty claims, and office transactions. The plan identifies the promised unit and formula; payroll and statements show what was paid and reported. Those records do not alone establish the formula’s legal classification.

For vendor personnel, gather contracts, invoices, worker agreements, staffing and supervision evidence, equipment ownership, schedules, and onsite control. For expenses, align directions with receipts, mileage, device use, required items, earnings, apprenticeship facts, and reimbursement lines.

Worked example

Assume one franchised dealership uses the same “support” cost center for four people. A parts-counter employee spends a sampled week 60 percent requisitioning, stocking, and dispensing vehicle parts, 15 percent processing warranty returns, and 25 percent making deliveries. Those records may support the actual-duty portion of the federal partsman route, but the establishment’s vehicle-sales facts and the treatment of the remaining duties still require review. Even if the route is supported, California overtime and the other state rules remain.

A porter receives $20 per hour plus $5 for each vehicle prepared for delivery. The $5 amount could be piece-rate compensation if the actual formula pays a defined completed unit. If piece-rate work occurred, the analyst should test section 226.2 using clock time, vehicle records, the plan, rest compensation, other nonproductive activities, and statement fields. It would be premature to label every minute without a completed vehicle as nonproductive; moving vehicles, obtaining supplies, and preparation steps may be directly related to the unit, while a mandatory all-hands meeting may fall elsewhere.

A remote BDC representative receives $25 for each appointment that appears and must use a personal phone. The payment could require commission, piece-rate, or bonus analysis depending on its formula and connection to a sale; “appointment commission” does not decide it. CRM events can corroborate unrecorded activity but not continuous hours. Phone use creates a separate section 2802 inquiry under Cochran into necessity, notice, method, and amount.

Finally, a detailer is paid through a vendor that invoices per car, while dealership managers assign cars, sequence work, inspect results, and control access to the worksite. The invoice and vendor entity are evidence, not the employee-classification result. Section 2775’s applicable path, any exception, and any client-employer question must be tested from the complete relationship. The porter, BDC representative, and detailer cannot inherit the parts-counter employee’s federal analysis merely because all four appear in one cost center.

Strategic implications

For a dealer, the best control is a role matrix linked to period records. Payroll and operations should agree on employer entity, wage order, duty branch, compensation unit, time-capture path, and expense owner before assigning earning codes. Vendor oversight should preserve contracting boundaries and actual operating facts rather than rely on paper labels. Sampling by role also prevents a genuine partsman analysis from spreading to dissimilar support jobs.

For a worker, the useful evidence is specific to the asserted issue: dated duties for a federal route, punches and corroborating events for time, unit records and plan versions for incentive pay, meal records and rest circumstances for breaks, and directions plus receipts for expenses. Recording which manager directed a task or required an item often matters more than a broad statement that the department was busy.

Both sides should reconcile ordinary, inventory, promotion, and short-staffed weeks to see whether duties and time capture materially change.

Analysis limits

This framework does not decide a worker’s employer, wage order, federal overtime route, pay-method classification, hours, break facts, or reimbursement amount. It does not determine whether a statutory contractor exception applies, whether a client is an employer, or whether a particular item is a customary hand tool, uniform, safety device, or shop equipment. Remedies, penalties, mental-state requirements, limitations periods, local rates, and authority after the source-check date require separate verification.

Primary authority

The federal nodes are FLSA sections 6, 7, and 13(b)(10), 29 C.F.R. section 779.372, Part 785, and Part 778. California nodes include Labor Code sections 226.2, 226.7, 2775, 2802, 2804, 510, and 1174; Wage Orders 7 and 9; MW-2026; DIR’s wage-order guide; and Cochran v. Schwan’s Home Service. The authority panel supplies official links and the proposition and limit attached to each source.

Evidence boundaries 7 domains

Verify the inference

Evidence domains used in this guide

E01

Time proof

  • Raw punches and edit audit trail
  • Schedules, meal punches, attestations, and waivers
Can establish
Recorded work intervals, facial meal timing, schedule expectations, and who changed a punch for a stated reason.
Cannot establish alone
The complete span of controlled or suffered-permitted work, off-clock activity, or whether an authorized rest was actually provided.
E02

System activity

  • DMS, CRM, repair-order, OEM training, access, and alarm timestamps
  • Messages, email, phone, device, and workstation events
Can establish
Activity at identified points, sequence, employer knowledge, regularity, and potential contradictions in the scheduled or recorded day.
Cannot establish alone
Continuous work between events, the legal character of every interval, or the amount of uncompensated time without a reasonable inferential method.
E03

Output and transaction proof

  • Flag ledger, repair orders, parts tickets, and warranty events
  • Deal jackets, delivery, funding, cancellation, return, and reversal records
Can establish
Units produced, transactions, attribution, timing, identified reversals, and the output or deal events used by a pay formula.
Cannot establish alone
All hours worked, whether a component is legally a commission or piece rate, or whether a debit from pay is permitted.
E04

Pay proof

  • Payroll register, wage statements, earning codes, and rate tables
  • Draw reconciliations, bonus or spiff tables, premiums, and later true-ups
Can establish
Amounts paid, dates, rates and codes used, statement presentation, reconciliations, and changes between original and later payroll.
Cannot establish alone
Whether missing work occurred, whether every payment was correctly classified, or whether a written earning condition is valid and satisfied.
E05

Plan proof

  • Signed commission plan, receipt, effective versions, and amendments
  • Piece-rate or incentive formula, policies, guarantees, and deduction terms
Can establish
The promised pay unit, written earning condition, formula, effective version, receipt, and stated treatment of advances or later events.
Cannot establish alone
Actual practice, actual duties, complete hours, whether a condition occurred, or whether a term satisfies every applicable wage rule.
E06

Establishment and duty proof

  • Legal entities, dealer or franchise connection, business activity and sales records
  • Job descriptions, actual-duty samples, schedules, and time allocation
Can establish
Facts used to select a wage order, retail-establishment status, dealership status, employer identity, and duty-based exemption route.
Cannot establish alone
Pay accuracy for a period, the regular rate, hours worked, or whether the written job description matches actual work.
E07

Expense proof

  • Required-item inventory, policies, receipts, mileage, device, and subscription records
  • Reimbursement calculations, payment lines, apprentice status, and employee earnings
Can establish
What the work required, employee expenditure, amount, reimbursement method, earnings threshold, item category, and payment made.
Cannot establish alone
Whether an expense was legally necessary or whether a wage-order hand-tool exception applies without direction, item, establishment, and earnings facts.
Authority boundaries 18 sources

Rule and boundary

Sources used in this guide

  1. federalstatute

    29 U.S.C. § 206

    Fair Labor Standards Act — federal minimum wage

    Proposition
    Section 6 establishes the federal minimum-wage obligation for covered employees.
    Limit
    It does not select a higher state or local floor or decide whether particular time is hours worked.
    Source checked 2026-07-1829 U.S.C. § 206(a)
  2. federalstatute

    29 U.S.C. § 207

    Fair Labor Standards Act — overtime and regular rate

    Proposition
    Covered nonexempt employees generally receive overtime after forty hours in a workweek at one and one-half times the regular rate.
    Limit
    The section does not generally create daily overtime and does not displace more protective state law.
    Source checked 2026-07-1829 U.S.C. §§ 207(a), (e), (i)
  3. federalstatute

    29 U.S.C. § 213(b)(10)

    FLSA dealership overtime exemption

    Proposition
    The statute removes federal overtime for a qualifying salesman, partsman, or mechanic primarily engaged in selling or servicing qualifying vehicles at a qualifying nonmanufacturing establishment.
    Limit
    It removes only the FLSA overtime requirement; it does not remove federal minimum-wage or record duties or decide California obligations.
    Source checked 2026-07-1829 U.S.C. § 213(b)(10)(A)
  4. federalregulation

    29 C.F.R. § 779.372

    Federal dealership exemption regulation

    Proposition
    The regulation addresses qualifying dealership establishments, primarily-engaged duties, and salesman, partsman, and mechanic categories.
    Limit
    Its older salesman wording cannot be used to exclude service advisors contrary to the Supreme Court’s later Encino decision.
    Source checked 2026-07-18
  5. federalregulation

    29 C.F.R. Part 785

    Federal hours-worked principles

    Proposition
    Part 785 addresses suffered-or-permitted work, employer knowledge, waiting, meals, rests, training, travel, and preliminary or postliminary activities.
    Limit
    Federal hours-worked rules do not displace California’s broader control test or create a federal duty to provide meal or rest periods.
    Source checked 2026-07-18
  6. federalregulation

    29 C.F.R. Part 778

    Federal overtime compensation and regular rate

    Proposition
    Part 778 explains workweek-specific regular-rate treatment for hourly, piece-rate, commission, bonus, and mixed compensation.
    Limit
    The correct inclusion, allocation, divisor, and premium depend on the payment substance and do not automatically govern California calculations.
    Source checked 2026-07-18
  7. californiastatute

    Labor Code § 226.2

    California piece-rate rest, recovery, and nonproductive-time compensation

    Proposition
    When piece-rate work occurs in a pay period, the statute requires separate compensation for rest/recovery and other nonproductive time and specifies rates, records, and statement fields.
    Limit
    The statute does not make every non-flagged minute nonproductive time or decide federal overtime, break provision, or the applicable local rate.
    Source checked 2026-07-18
  8. californiastatute

    Labor Code § 226.7

    California meal, rest, and recovery premium pay

    Proposition
    The statute prohibits required work during mandated meal, rest, or recovery periods and provides an additional hour at the regular rate of compensation when a required period is not provided.
    Limit
    Whether a period was required and provided, and the rate and derivative consequences, require separate factual and legal analysis.
    Source checked 2026-07-18
  9. californiastatute

    Labor Code § 2775

    California employee and independent-contractor classification

    Proposition
    Section 2775 supplies the ABC employee-classification framework subject to stated statutory exceptions and alternative tests.
    Limit
    A 1099, vendor entity, contract label, or business registration does not itself satisfy the test or decide joint employment.
    Source checked 2026-07-18
  10. californiastatute

    Labor Code § 2802

    California necessary-business-expense reimbursement

    Proposition
    An employer must indemnify an employee for necessary expenditures or losses incurred in direct consequence of duties or obedience to employer directions.
    Limit
    Necessity, direction, amount, notice, and the adequacy of a reimbursement method remain fact-specific; the statute is distinct from wage-order tool rules.
    Source checked 2026-07-18
  11. californiastatute

    Labor Code § 2804

    California anti-waiver rule for expense indemnity

    Proposition
    A contract or agreement that purports to waive the protections of the expense-indemnity article is void.
    Limit
    The anti-waiver rule does not itself establish that a particular item was necessary or what amount was reasonably incurred.
    Source checked 2026-07-18
  12. californiastatute

    Labor Code § 510

    California daily and weekly overtime

    Proposition
    California generally requires daily and weekly overtime and double time at specified thresholds for nonexempt employees.
    Limit
    Coverage, exemptions, alternative schedules, workday/workweek definitions, and the regular-rate calculation remain separate questions.
    Source checked 2026-07-18
  13. californiastatute

    Labor Code § 1174

    California hours, wages, and piece records

    Proposition
    The statute requires records of daily hours, wages, and piece units or rates and protects an employee’s ability to keep a personal time record.
    Limit
    A record’s presence establishes recorded information, not necessarily complete controlled or suffered-permitted time.
    Source checked 2026-07-18
  14. californiawage order

    IWC Wage Order 7

    Mercantile Industry Wage Order

    Proposition
    Order 7 supplies mercantile-industry definitions and rules for hours, minimum wage, overtime, records, deductions, tools, uniforms, meals, and rests.
    Limit
    It applies only after classifying the business and work; standalone vehicle-repair businesses generally route to Order 9.
    Source checked 2026-07-18
  15. californiawage order

    IWC Wage Order 9

    Transportation Industry Wage Order

    Proposition
    Order 9 supplies parallel hours, pay, record, tool, meal, and rest rules for covered transportation-industry operations, including many standalone repair businesses.
    Limit
    The classification guide is fact-dependent; a dealer-connected repair operation generally routes to Order 7 instead.
    Source checked 2026-07-18
  16. californiawage order

    California MW-2026

    California Minimum Wage Order for 2026

    Proposition
    The official order sets the statewide minimum wage at $16.90 per hour effective January 1, 2026.
    Limit
    A higher local or industry-specific rate may apply, and the statewide figure does not select the rate for every location or date.
    Source checked 2026-07-18
  17. californiaagency guidance

    DIR wage-order guide

    Which IWC Order? Classifications

    Proposition
    DIR’s guide routes dealer- or gas-station-connected vehicle repair to Order 7 and standalone repair garages generally to Order 9.
    Limit
    The guide is official guidance, not a safe harbor, and classification still depends on establishment and work facts.
    Source checked 2026-07-18pp. 22–23
  18. californiacase

    Cochran v. Schwan’s

    Cochran v. Schwan’s Home Service, Inc., 228 Cal.App.4th 1137 (2014)

    Proposition
    When employees must use personal cell phones for work, section 2802 requires reimbursement of a reasonable percentage of the bill.
    Limit
    The decision does not set one universal percentage or decide whether every optional communication is a necessary business expense.
    Source checked 2026-07-18228 Cal.App.4th 1144–1145