Labor time guides and flat-rate billing
A labor time guide lists how many hours a repair should take on a given vehicle, for example 1.8 hours for front brake pads and rotors. Under flat-rate billing the customer pays book time × your labor rate, no matter how long the job actually takes. Most US shops quote this way because the customer knows the price up front.
Where the times come from
Commercial labor guides, usually part of repair information and shop software subscriptions, publish times per job, vehicle and engine, with add-ons for things like seized hardware or four-wheel drive. Carmakers publish their own warranty times, which are usually lower because they assume a dealer tech with the right tools doing the job often.
Flat rate vs actual time
| Flat rate (book time) | Actual time (clock) | |
|---|---|---|
| Customer pays | Book hours × rate | Hours worked × rate |
| Price known up front | Yes | Only an estimate |
| Who carries the risk | The shop, if the job runs long | The customer |
| Best for | Common, well-defined repairs | Diagnosis, custom and restoration work |
Book time vs clock time
An experienced tech often beats book time, which is how flat-rate shops make money and how flat-rate techs earn more. A rusted bolt or a broken part can blow it. When a job runs over because of something you couldn't see, like a seized caliper bolt that has to be drilled, stop and get approval for the added time, as you would for added parts.
Paying techs on flat rate
Many shops pay technicians per flagged hour rather than per clock hour. Federal and state wage laws still apply: a tech must get at least minimum wage for all hours worked, and overtime rules apply to employees. Some states add their own rules for piece-rate pay, so check with your state labor department before you set up flat-rate pay.
On the estimate and invoice
- One labor line per job: "Front brake pads and rotors, 1.8 h × $125".
- Parts on their own lines, marked new, used, rebuilt or reconditioned where your state requires it.
- Diagnosis as its own line. See diagnostic fee.
Your hourly rate itself: mechanic labor rate.
Hours × rate, done for you. In WrenchTicket you enter the hours on each labor line and your saved labor rate fills in. Parts, fees and sublet work go on separate lines with subtotals. Pro is $15 a month for unlimited jobs and VIN history.
Make an invoiceQuestions
Is flat-rate billing legal?
Yes, as long as the customer authorizes the price before the work and the invoice shows labor as your state requires.
What if the tech finishes in half the book time?
Under flat rate the customer still pays the quoted labor. That's the deal: a fixed price either way.
Can I charge more than book time?
Only with the customer's approval before you do the extra work, recorded on the repair order.
Checked October 31, 2026. General information; wage and repair rules vary by state.