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Tex. Occupations Code § 2301.402

RATE OF COMPENSATION

Texas · Texas Occupations Code · Status: effective

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Tex. Occupations Code § 2301.402, RATE OF COMPENSATION, Texas, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/704829
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(a) A manufacturer or distributor shall fairly and adequately compensate its dealers for warranty work. (b) A manufacturer or distributor may not pay or reimburse a dealer an amount of money for warranty work that is less than the amount the dealer charges a retail customer for similar nonwarranty work. (c) In computing the amount of money a dealer charges a retail customer under Subsection (b), the manufacturer or distributor shall use the greater of: (1) the average labor rate charged during the preceding six months by the dealer on 100 sequential nonwarranty repair orders, exclusive of routine maintenance; or (2) the average labor rate charged for 90 consecutive days during the preceding six months by the dealer for nonwarranty repairs, exclusive of routine maintenance.