When a dealership’s service advisor walks over and says, "It’s warranty again," most technicians know what’s coming next: hours of work for half the pay. A viral Facebook Reel captured that feeling perfectly, using a "Key & Peele" sketch to show just how hard it is to stay calm when a four-hour job only pays 0.6 on the clock. The clip from Minnesota-based auto parts supplier MT-RSR uses a bit of comedy sweetener—the infamous "I can’t tell if you’re angry sketch"—to coat the bitter truth that warranty work is the bane of most service technicians trying to earn as much income as possible. "Every tech when service drops the ‘it’s warranty’ line again," reads the caption on the video that’s been viewed more than 78,000 times. "This is exactly how it feels trying to stay calm while getting paid 0.6 for a 4-hour job." Mechanics’ Pay Structure: Flat-Rate vs. Hourly In many dealership service departments, technicians are paid under a "flat-rate" system rather than strictly by the hour. Under flat rate pay, a service advisor or manufacturer guide assigns a predetermined number of hours to a specific job, and technicians receive payment based on that estimate, regardless of whether they finish faster or encounter unexpected delays. By contrast, hourly pay guarantees compensation for the actual hours worked, which tends to reduce income volatility but also limits upside for high-output techs. The trouble begins when warranty jobs come into play. According to an industry blog, "Warranty repair flat rates are usually set by the manufacturer and are typically less than what flat-rate employees are paid for comparable shop repairs." Techs in forums repeatedly point out that factory warranty work pays fewer flagged hours, meaning the same job that might pay six hours at customer pay yields maybe three or four under warranty. The viral Reel and its comment thread offer a glimpse into what many technicians are experiencing. Comments like "90 % of my work is warranty…parts are always on backorder" and "I’ve just accepted that it’s all warranty" reflect deep frustration. OWNERSHIP STORIES Viral stories from across the web Our team of experts tracks what owners are saying about car-shopping, repairs, the daily driving experience and more on social media. When a car is under warranty, the manufacturer reimburses the dealer for labor according to the time guide they set, yet those time guides are often tighter than customer-pay benchmarks. A recent article noted that "for repairs done on cars under warranty…mechanics tend to get paid even less." Why the Disconnect? Several interlocking factors contribute to the disconnect between actual work and compensation on warranty jobs. Manufacturers set the "book time" for warranty repairs. These estimates come from proprietary guides or OEM-approved repair time estimates, and they often assume perfect conditions, not accounting for factors such as rusted bolts, unexpected diagnostics, or parts that aren’t readily available. Additionally, dealers pay technicians based on what has been flagged, and some shops assign lower percentages of that flagged time or subdivide productivity differently when warranty jobs are prevalent. A consultancy blog for fixed-ops managers frames this as: "Should technicians be paid customer pay time on warranty work?" and notes that elevating warranty pay to customer pay time would boost morale but also raise cost and complicate profitability. The flat-rate system also tends to encourage efficiency; however, when time guides are artificially low, or when waiting for parts and paperwork consumes flagged hours, techs end up working harder for less compensation. Industry commentary says manufacturers’ estimates "may be a lot less generous" than customer-pay benchmarks. Because warranty work volume may be high in fixed operations, some outlets estimate that warranty work may represent a significant share of a dealership’s service bay volume, making it a systemic issue rather than an occasional quirk. Gallery: Where Have All the Mechanics Gone? - A BoldRide Rant The Ripple Effects: Tech Morale, Quality, and Turnover For technicians, the consequences are real. Lower income for the same (or more) work leads to frustration, burnout, and attrition. One Reddit thread calls flat-rate work without fair compensation "a cancer on the profession." For dealerships, there is a risk of morale loss or higher turnover in the skilled workforce, which in turn can affect service quality, customer return visits, and brand reputation. Even from a purely business perspective, techs who feel undercompensated may be less motivated to go the extra mile, potentially causing inefficiencies or leading to job turnover. From the customer’s viewpoint, a car owner may assume that a dealership’s "free" warranty repair doesn’t compromise what a paid service receives, but if the technician is underpaid or rushed, that assumption may not hold. The viral Reel speaks to this disconnect: laughter in the sketch, but a grim subtext for anyone who does the work. So what can shift? One lever lies in aligning compensation more closely with the actual time required, rather than strictly the manufacturer’s flagged time. Some modern shops are experimenting with hybrid pay models, combining a base hourly guarantee with bonus pay tied to flagged hours or efficiency, which can buffer technicians when flagged hours alone fail to accurately reflect the tasks they perform. On a policy level, some states are reviewing whether manufacturer time guides for warranty work should be regulated or audited to ensure fairness and transparency. For technicians themselves, choosing shops or brands that cover warranty work at the customer's expense or guarantee payment for waiting/diagnostics is a strategic move in a competitive labor market. For consumers dropping off their cars, it may seem like warranty work is effortless, but behind the scenes, the technician doing the work is navigating a system where the math seldom adds up. In the auto industry, the question is clear: If the people who keep your brand’s cars running aren’t paid fairly, the consequences will ripple well beyond a short viral clip. Motor1 reached out to the creator via email and direct message. We’ll be sure to update this if they respond. We want your opinion! What would you like to see on Motor1.com? Take our 3 minute survey. - The Motor1.com Team