Non-exempt Salaried Employee
BelleF
12 Posts
We have a non-exempt salaried employee that would like to do extra work for our recreation center as an umpire in the evenings. Does anyone know of a way to pay him for those hours separate from his salaried hours?
Would those extra umpire hours count in his regular 40 hour week and then we would have to pay him the half-time overtime?
Comments
Do you have a formal policy outlining what the levelized wage payment covers?
I have forgotten what the technical term is for the pay plan you are describing, in which all straight time is accounted for in the standard wage payment although there are some caveats (e.g., still can't breach minimum wage, minimum wage time-and-one-half OT when all is accounted for.) Perhaps someone here uses that pay system and can fill you in on the details.
Non-exempt salary-like pay can cause as many problems as it resolves.
His salary covers 40 hours per week. Any time over that is paid in overtime but the overtime is based on the actual number of hours worked in the workweek. You divide his weekly salary by the number of hours worked in that week to find his regular rate. His additional overtime is then computed by multiplying the overtime hours by one-half of the regular rate of pay. This is according to the Wage and Hour Division of Dept of Labor.
But I think all of his hours would have to be added together to count as hours worked for the week and then he would be paid at this half-time overtime rate for any time over his 40 hours. Therefore, he wouldn't be paid well at all for his umpire time.
It is my understanding that all work done for the same employer must be counted in the OT calculations regardless of the actual job being done. You could do it a different way (which does make it better for the employee) than the fluctuating workweek method that you describe (which is meant to be better for the employer). The fluctuating workweek method assumes that all jobs done fall under the same salary.
If you make the assumption that he is doing two jobs at two pay rates, you would need to do a blended rate calculation for the OT calculation.
40 hours at $15 per hour (salary) + 6 hour umpire pay at $8 per hour = $648 divided by 46 hours would give a blended rate of $14.09 so OT premium would be $14.09*.5 = $7.05......so you would need to add 6 hours at $7.05 per hour extra (42.30) to the 648 to get total pay. In this example, he would actually be getting paid close to $15 per hour for those extra umpire hours.
Don't know if this is really what you want to do. Most companies avoid these types of situations like the plague because of such issues.