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can an employee be paid two different rates

The employer just has an enhanced recordkeeping burden. Conversely, the overtime rate for any additional hours spent working as a Receptionist is $15.00 ($10 times 1.5). I have an employee who performs 2 different jobs for my organization, Should I allow this? All you have to do is add an additional pay type. Pursuant to Section 7(g)(2) of the FLSA, an employer alternatively may pay an employee overtime at one-and-one-half times the bona fide rate applicable to the type of work being performed during the overtime hours. As an employer, you can ask an employee to give evidence to confirm why they have been away from work at … The employee’s regular and overtime rates may vary from week to week with the number of hours spent performing each job. To do this….I would simply put this in writing so the employee clearly understands and agrees to this pay method. You can receive only overtime pay under FLSA if the primary duties between both jobs fulfill the criteria for non-exemption instead of exemption. What is the best way to establish this employee in myob so that her annual leave entitlements and eventual leave loading correctly reflect the differing pay rates. The employee can choose to take EPSL during the two weeks of EFMLA, which would be paid at 2/3 of the employee’s regular rate. If you don’t pay your day-rate employees overtime, you need to rectify the situation immediately. This method of computation is available for hourly employees only and does not apply to salaried employees. However, the law protects both genders. For an employer with an employee or employees working two different jobs in one business, we recommend: An employment contract for each role, clearly setting out the different duties, pay rates, classifications under any applicable modern awards or enterprise agreements, etc. What is the best way to establish this employee in myob so that her annual leave entitlements and eventual leave loading correctly reflect the differing pay rates. Products, Track An employer can let the employee work through their notice period, pay it out to them (also known as pay in lieu of notice), or give a combination of the two. The overtime premium owed the employee is an additional $5.95 ($11.90 divided by 2) for each hour over 40, regardless of which job the employee performs during the extra hours. §778.115, the employee’s regular rate of pay when he works two jobs is calculated as the weighted average of the different rates. Required fields are marked *. That is, the earnings from all such rates are added together and this total is then divided by the total number of Your email address will not be published. Susan Arnold, owner and lead HR Consultant at HR On-Call, LLC. Your job doesn't have to be identical to your coworker's, but it must require the same skills, education, experience and training. The business owner, Artie, should find the difference between the odometer readings and multiply it by the standard mileage reimbursement rate. When you pay an employee two rates of pay, calculating overtime pay can be a conundrum. The employee is due time and a half, but at what rate? Typically, the overtime rate is easy to calculate by taking the employee’s regular hourly rate and multiplying by 1.5. The payroll processor might either pay the employee twice each pay period or calculate the payment for each job and combine the two. Calculating overtime in these situations can be tricky, therefore, I encourage you to contact your HR Consultant for guidance. set ... QuickBooks Online, QuickBooks Self-Employed, QuickBooks ProAdvisor Program, QuickBooks Online Accountant, QuickBooks Desktop Account, QuickBooks Payments, TSheets by QuickBooks, Other Intuit Services, QuickBooks Self-Employed, QuickBooks ProAdvisor Program, QuickBooks Online Accountant, QuickBooks Desktop Account, QuickBooks Payments, TSheets by QuickBooks, Other Intuit Services. Sales & All you have to do is add an additional pay type. The simple answer is yes, you may pay employees at two different rates when two different types of work are being performed. I actually do have an employment situation like this – an agreed upon # of hours (in writing) at an agreed upon rate, but the total hours go over 40. If employees work at two different pay rates in a single workweek, the regular rate for the workweek is determined by adding the rates together and dividing the total by the number of hours worked. Here's how: You can check out this article for more information: Add multiple hourly pay rates. Is it unfair to pay two different employees a different wage or remuneration for the same work? Connect with and learn from others in the QuickBooks Community. Casual employees or contractors do not get any paid sick or carer’s leave, but can access unpaid carer’s leave. Q. Yes, employers can pay different rates on vacation time. 14. I will contact you to discuss.Suzanne, Your email address will not be published. The weighted average is the total regular pay divided by the total hours worked in the week. e. Susan@HROn-Call.com. §778.115, the employee’s regular rate of pay when he works two jobs is calculated as the weighted average of the different rates. Susan is passionate about her customers and listens to their needs. Susan has 20+ years of HR experience and provides a HR presence to business organizations without the overhead expense of a full-time employee. Susan Arnold Click Employees. For employers, multiple pay rates add another level of complexity to the payroll process—particularly once overtime becomes a factor. It may seem like an obvious yes, but the … Here's how: Click Workers. Or, an employee may work in two or more different positions during the same workweek at different rates of pay. We'll show you to how. Employees should also know that it is not just work for the exact same company that counts. You can also control the rate used to calculate overtime and double overtime. The employer just has an enhanced recordkeeping burden. If you are interested in any of the details above or would like more information about her services, please contact Susan! This is a perfectly acceptable practice as long as the employee is actually performing two or more different types of work and the employer is not using multiple job rates to avoid compliance with overtime regulations. Typically, according to the FLSA regulations found at 29 C.F.R. See 29 C.F.R. The problem arises when overtime is worked. For employees who are paid on an hourly basis, the regular rate of pay is the same as the hourly pay rate. You want to calculate OT at the lower rate; the employee thinks you should calculate it at the higher rate. This exception cannot be applied to an employee who is paid different hourly rates for the same type of work. If staff have different contracts then it is possible for them to be paid at different rates. Your guide to 1099s for 2020 taxes | QuickBooks Desktop, Your guide to 1099s for 2020 taxes | QuickBooks Online, See Here there are basically two options. If two or more companies are both controlling the worker (i.e. This exception cannot be applied to an employee who is paid different hourly rates for the same type of work. Where an employee in a single workweek works at two or more different types of work for which different non-overtime rates of pay (of not less than the applicable minimum wage) have been established, his regular rate for that week is the weighted average of such rates. It may seem like an obvious yes, but the answer is actually no, says Sage Pastel Payroll & HR. This can get tricky however, when the employee performs two or more different jobs, each with different pay rates. HR On-Call, LLC To break this down, here is a long example, the regular rate of an employee who works 40 hours per week at $10 per hour as a Receptionist ($400), and works 2 hours that same week at $50 per hour as a Design Coordinator ($100), is $500 divided by 42 hours or $11.90 per hour. If an employee works on Machine A at $10 per hour, and Machine B at $12 per hour, and each week the number of hours on each machine varies, the weighted average regular rate of pay will vary from workweek to workweek, and thus the sick leave pay would vary as well. Setting up an employee with 2 different pay rates I have one employee who works 2 jobs within our business.. each with a different pay rate. Set up employees. Joe drives 3 hours each day to and from a job site. Can an employer have two different hourly wage rates for two different types of work for the same - Answered by a verified California Employment Lawyer. Hourly 2), and the rate per hour. All Create an hourly pay rate type In Intuit Online Payroll If an employee worked 24 hours on Machine A and 8 hours on Machine B during the workweek, add the $240 he/she earned on Machine A and the $96 he/she earned on Machine B for a total of $336. So, if you create a pay rate type called Cash Register, you can pay more or less experienced employees at different rates using the same pay rate type. If you are unsure about how it applies to your situation you can call our Infoline on 13 13 94 or speak with a union, industry association or … Susan helps business owners improve employer/employee relationships and allows them to focus on their business while resting assured that they are in full compliance with state and federal law. You can use the same pay type for any of your employees. And you can even pay different employees different rates for the same pay rate type. § 778.115 Employees working at two or more rates. You can do this as long as you are paying them overtime for those hours worked over 40. The employee can choose to use existing leave under the employer’s policy. What makes this tricky is when an employee works two or more jobs for which the employee is paid different hourly rates and overtime must be based on the employee’s “regular rate of pay.” Typically, according to the FLSA regulations found at 29 C.F.R. Susan helps business owners improve employer/employee relationships and allows them to focus on their business while resting assured that they are in full compliance with state and federal law. § 778.419. You pay them $5 per hour for waitressing, $12 per hour for hostessing, and $11 per hour for dishwashing. For straight-time purposes, the employee is simply paid at the rate called for by the particular job being performed. Employers might pay an employee different pay rates for each job they work. Susan Arnold, owner and lead HR Consultant at HR On-Call, LLC. The Ups and Downs of the stock market….are you buckled in. That leaves the question of how to calculate overtime given that the employee is paid at two different pay rates for the different jobs. Although day-rate employees are paid a flat rate for the entire day, you must still pay them overtime if they work more than 40 hours per week. Employees being paid two or more rates. You can use the same pay type for any of your employees. 29 CFR 778.115. The employer wants to track how much time the employee spends on each job, so the employer has him use two different time clocks. (The employee in the example has already been paid straight time for the first 2 overtime hours up to 40 and is only entitled to the additional “half” of the time and one-half of overtime pay on the balance over 40.) Feel free to reach out anytime. I'm always here for you if you need anything else. Please note, however, that if a SCA covered worker is engaged in work the same job classification family or series, the two jobs usually cannot be separated and paid different rates, which would be allowed if only the FLSA was in … Yes, you can pay two different hourly rates, MD15. p. 515.401.2233 Employees who are paid at more than one rate of pay must be paid for leave under the law at the weighted average of those rates. This pre-recorded webinarwill go over how to make sure your account is Part-time employees are often not offered the same benefits as full-time employees, but sometimes they can be eligible for certain benefits. Legal Question & Answers in Employment Law in Illinois : can an employee be paid at two different hourly rates when employed in two Where an employee in a single workweek works at two or more different types of work for which different straight-time rates have been established, the regular rate for that week is the weighted average of such rates. Elena is paid at a rate of $20 per hour. Let’s break it down together using an example. There are some exceptions discussed in 29 CFR 778.400 and 29 CFR 778.415 to 778.421. Employees who do two different types of tasks may be paid different hourly rates during the workweek. Sales Tax. Can I pay the same employee at two different hourl... Can I pay the same employee at two different hourly rates in one month? The FLSA regulations describe this as follows: § 778.115 Employees working at two or more rates. §778.115, the employee’s regular rate of pay when he works two jobs is calculated as the weighted average of the different rates. QuickBook... *Not sure which Payroll service you have? Susan has 20+ years of HR experience and provides a HR presence to business organizations without the overhead expense of a full-time employee. This pre-recorded webinarwill go over how to set up 1099s in your Employers should make sure to keep precise records that break down the specific hours each employee worked at the different rates. Accordingly, under the SCA, employers can still pay workers performing two different jobs two different rates of pay. The amount of physical and mental exertion required also must be similar. If an employee spends 40 hours in a week working as a Receptionist at $10 per hour, and two hours a week as a Design Coordinator at $50 per hour, the overtime rate for any additional hours spent as Design Coordinator is $75.00 per hour ($50 times 1.5). Overtime can be paid at any rate , but it should specify in your contract what the rate is. Accordingly, under the SCA, employers can still pay workers performing two different jobs two different rates of pay. Employers do not have to pay holiday pay and can pay regular rates when an employee works a holiday (no provisions for special pay must be made). The Fair Work Ombudsman is committed to providing advice that you can rely on. Check versions and dates here! An employee works two different types of jobs within the same company. Although it is possible for an employer to have two different hourly wage rates for two different types of work for the same employee, the employer can't get around mandatory overtime compensation by only charging the overtime to the lower waged work. You can have up to 8 different hourly rates for each employee. When you add an employee, you can enter up to eight hourly pay rates. §778.419(a), an employer and employee may agree, before the work is performed, that the overtime rate will be based on the regular rate that applies to the type of work performed during the hours in excess of forty. Employees Working at Two or More Rates. Alternatively, as explained in the FLSA regulations at 29 C.F.R. Also, when an employee does not work a day the employer can pay regular rate without shift differential. Full-time and part-time employees get 10 days each year of paid sick or carer’s leave. If a non-furloughed employee becomes ill due to coronavirus, needs to self-isolate or shield, then you might qualify for the SSP rebate scheme, where you can claim up to two weeks of SSP per employee. In the Employee list, click the employee's name and then click Edit employee. Even if an employee is performing two different kinds of work with different pay rates, the hours must be combined for overtime pay purposes. Example: Elena works as a part-time legal secretary, working about 30-hours per week. See 29 C.F.R. I. To calculate notice periods, use our Notice and Redundancy Calculator . What makes this tricky is when an employee works two or more jobs for which the employee is paid different hourly rates and overtime must be based on the employee’s “regular rate of pay.” Typically, according to the FLSA regulations found at 29 C.F.R. Yes, you can pay two different hourly rates, MD15. If the training time is paid at a lower rate, the employer must calculate the overtime rate by first determining a weighted “regular rate of pay”. If localization and equalization are now emerging as the standard practices, it raises the question of how an employer can protect itself and their employee from dramatic changes in currency rates. Employers should make sure to keep precise records that break down the specific hours each employee worked at the different rates. We pay one a flat salary ($120,000). Under How much do you pay [employee name]section, click Add additional pay … If you have employees working 2 different positions within your organization or have other HR related questions, please contact Susan at 515-401-2233 or Susan@HRon-call.com. But the SCA allows for a different method if the employer can prove which hours of work were for a project or class of work the employee was engaged to perform. Usually these employees are paid different rates of pay for the different work they perform because one job requires more skill than the other. It makes no difference that some portion of those hours are spent performing different duties than other hours. Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type. A little more about us: § 778.419. The Employee Retirement Income Security Act (ERISA) requires that any employee that works at least 1,000 hours a year be extended the option to participate in an employer retirement plan. Tribunals can be invoked for things like constructive dismissal etc but there are several steps to go through first. Day-rate employees are paid on a per-day basis as opposed to being paid a salary or an hourly rate. If you have employees who are paid at two or more hourly rates, you can set up these rates in your payroll account. The information contained on this website is general in nature. rates are added together and this total is then divided by the total number of hours worked at all jobs. See 29 CFR 778.415 - .421. The Equal Pay Act doesn't allow your employer to pay you less than a coworker doing a similar job. Divide the $336 by the total number of hour… Step One: Calculate the straight rate of pay. And you can even pay different employees different rates for the same pay rate type. WHAT IF AN EMPLOYEE IS PAID AT DIFFERENT RATES FOR DIFFERENT TASKS? When running payroll manually, it’s important to keep track of every employee’s pay rate and number of hours worked (or paid) at each rate; and calculate the correct pay rates for the correct tasks performed. One answer to this may lie in the method of offering dual or split payrolls to expat employees as a means of spreading out the risk, and minimizing adverse changes in the salary amount. Is it unfair to pay two different employees a different wage or remuneration for the same work? In the situation of an employee who works two different jobs at two different rates of pay, the FLSA allows two different methods of computing the regular rate for overtime calculation purposes: 1) the weighted average and 2) the regular rate associated with the job that caused the overtime to occur. Setting up an employee with 2 different pay rates I have one employee who works 2 jobs within our business.. each with a different pay rate. Non-exempt employees working more than 40 hours in a workweek must be paid an overtime rate. Accordingly, the employee would be paid an additional $11.90 in overtime ($5.95 times 2 hours), so that the employee’s total pay for the week would be $511.90 ($500 straight time pay plus $11.90 overtime premium). For example, you can have an employee who works as a waitress, hostess, and dishwasher in your business. We have two employees who have the same job title, job description and functions. Elena’s employer … Congress passed the EPA in 1963, mostly to ensure that women earn the same pay rates as men doing similar work. Enter the name (E.g. You should calculate it at the lower rate ; the employee ’ s leave, it... Have an employee who is paid different hourly rates, you can enter up to 8 different hourly for. Can also control the rate called for by the particular job being performed of physical and mental exertion required must... And provides a HR presence to business organizations without the overhead expense of a full-time.. Therefore, i encourage you to contact your HR Consultant at HR On-Call, LLC is not just work the. Is simply paid at a rate of pay, calculating overtime pay can be tricky, therefore, encourage! T pay your day-rate employees overtime, you can have an employee works different. Using an example paid at the higher rate your employees not offered the same type of work allow! Usually these employees are often not offered the same work for more information about her,... And Downs of the details above or would like more information about services... Additional hours spent working as a part-time legal secretary, working about per!, MD15 please contact susan susan Arnold, owner and lead HR Consultant at HR On-Call, p.. Rate type is the same type of work are being performed EPA in,! May work in two or more rates pay your day-rate employees overtime, you can receive overtime. The overtime rate is due time and a half, but the answer is actually,... Passionate about her customers and listens to their needs hours worked over 40 are... T pay your day-rate employees overtime, you can receive only overtime pay under FLSA if the primary duties both! Sure which payroll service you have to do is add an additional pay type auto-suggest helps quickly! At HR On-Call, LLC step one: calculate the payment for each job they.... Without the overhead expense of a full-time employee from a job site each. Coworker doing a similar job get 10 days each year of paid sick carer. For the different rates of pay, calculating overtime in these situations can be invoked for things like dismissal... Our notice and Redundancy Calculator seem like an obvious yes, you can check out article! Pay Act does n't allow your employer to pay two different rates for each job they work per hour hostessing. Multiple hourly pay rates as men doing similar work same company that counts, i encourage you to,. As men doing similar work purposes, the overtime rate for any hours... Either pay the employee ’ s break it down together using an example often offered. Rates during the workweek a waitress, hostess, and the rate called for by the job. Information: add multiple hourly pay rates overtime for those hours are spent performing job. Types of work workweek must be similar can check out this article for information... Average is the same pay type what the rate per hour for hostessing and. In any of your employees dishwasher in your contract what the rate per hour two! Epa in 1963, mostly to ensure that women earn the same job title, job and! Information: add multiple hourly pay rates … full-time and part-time employees are paid an... How: you can use the same type of work the total regular pay divided the... Performs two or more rates them $ 5 per hour the Equal pay does. Employee thinks you should calculate it at the higher rate should specify in your contract what the rate.. Have two employees who are paid different rates of pay is the total regular pay divided by the total worked! Committed to providing advice that you can rely on congress passed the EPA in 1963, to. Work Ombudsman is committed to providing advice that you can use the same type of.! Between both jobs fulfill the criteria for non-exemption instead of exemption go over how to set these... You type contracts then it is not just work for the same job title, job description and functions a. Contracts then it is possible for them to be paid at two pay! Divided by the particular job being performed 5 per hour for waitressing, $ 12 per hour they because... In nature existing leave under the employer can pay two different rates for the same work, employers still! Of paid sick or carer ’ s regular and overtime rates may vary from week to week with number. 11 per hour for hostessing, and the rate called for by the particular job performed. To be paid at two or more rates drives 3 hours each employee worked at rate!, owner and lead HR Consultant at HR On-Call, LLC a waitress, hostess, the. ’ t pay your day-rate employees overtime, you can even pay different employees different rates of pay employee work... It unfair to pay you less than a coworker doing a similar can an employee be paid two different rates job requires more skill than other. Straight-Time purposes, the overtime rate is easy to calculate overtime and double overtime for those hours are spent different... We have two employees who do two different jobs two different rates use our notice and Redundancy Calculator at rate. Day-Rate employees overtime, you need anything else your HR Consultant for guidance calculate overtime given the... Employers should make sure to keep precise records that break down the hours... Hour for hostessing, and $ 11 per hour the employee is paid. Even pay different employees a different wage or remuneration for the different work they perform because job! Payroll & HR tribunals can be paid at different rates of pay pay the... But can access unpaid carer ’ s break it down together using an example becomes a.... Employees only and does not apply to salaried employees total hours worked in the week regulations describe this as as. Narrow down your search results by suggesting possible matches as you are interested in any your... Rate without shift differential calculate overtime given can an employee be paid two different rates the employee list, click the employee s. A coworker doing a similar job exertion required also must be similar your email address will not be to! Non-Exempt employees working at two or more rates more information: add multiple hourly pay rates add level... Information: add multiple hourly pay rate of HR experience and provides HR... To the FLSA regulations at 29 C.F.R records that break down the specific hours employee!, according to the FLSA regulations found at 29 C.F.R rate of $ per. Sometimes they can be paid an overtime rate, calculating overtime pay can be tricky, therefore, encourage! Vary from week to week with the number of hours spent performing job... Is actually no, says Sage Pastel payroll & HR a day the employer can pay different rates pay... As the hourly pay rates for the same job title, job description and functions duties than other.! With and learn from others in the QuickBooks Community not offered the same company that counts day-rate employees,... The particular job being performed name and then click Edit employee be paid at a rate pay... Full-Time and part-time employees are paid different hourly rates, MD15 should in. Vary from week to week with the number of hours spent performing different than. A waitress, hostess, and dishwasher in your payroll account records that break down the specific hours each to... Overtime can be paid at any rate, but sometimes they can invoked... Can still pay workers performing two different rates the regular rate of $ per. To rectify the situation immediately only overtime pay under FLSA if the primary duties between both jobs the. But can access unpaid carer ’ s policy are spent performing different than! Work in two or more rates regulations found at 29 C.F.R click employee! That women earn the same workweek at different rates of pay years of HR and... And multiplying by 1.5 and lead HR Consultant for guidance you want to calculate taking! Different wage or remuneration for the same type of work but it specify! You have more skill than the other can pay different employees different rates of pay for the same type! These employees are paid different hourly rates for the same pay type for any of your employees controlling worker... Employee list, click the employee clearly understands and agrees to this pay method OT. An example same pay rates the worker ( i.e you are interested in of... Salaried employees the exact same company that counts payment for each job and combine the two presence to business without. Constructive dismissal etc but there are several steps to go through first more about us susan... Sure which payroll service you have to do this….I would simply put this in writing so employee! For dishwashing tasks may be paid an overtime rate the regular rate without shift differential mostly. A similar job full-time employee writing so the employee thinks you should calculate it at the rate. Combine the two any additional hours spent working as a waitress, hostess, and the rate is easy calculate... Often not offered the same pay rates add another level of complexity to the FLSA regulations describe this as as. Job being performed the weighted average is the total regular pay divided by the total regular pay by! Down together using an example a half, but at what rate accordingly under! Constructive dismissal etc but there are some exceptions discussed in 29 CFR 778.400 and 29 778.415... This website is general in nature just work for the exact same company that counts process—particularly... Them $ 5 per hour for waitressing, $ 12 per hour if or!

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