You have to pay overtime to your employees! I am constantly saying it in Scoop articles, at my seminars, and in conversations with MNLA members. No matter how much salary you pay someone, if their primary job is labor related then you need to pay them overtime.
What if I told you…
What if I told you that instead of paying overtime at time and one half the regular rate, you could pay it at a “half time” rate?
“But that goes against everything you have been saying about overtime!”
I know, I know, but I promise you that setting up a payment system called the fluctuating workweek is a completely legal way to pay your employees. Additionally, overtime only needs to be paid at a half time rate.
What is the Catch?
Ok, I’ll admit there is a catch. When an employer pays an employee based on the fluctuating work week model there are certain requirements which must be met in order to comply with the law. The biggest of the requirements is that the employee must be paid the same base weekly rate if they work 25 hours or 55 hours. So that can be a potential down side for some companies.
There are also other requirements which must be met in order to have this system work properly and be legal. If you think this pay system may be a good fit for your company, contact me and I will explain some of the more intricate requirements and give you a rough idea of how much payroll you could save in an average season.
What it Means for the Green Industry
In a seasonal work environment like we have in Minnesota, this pay system is an excellent way to cut down on overhead and take advantage of some of the benefits that a normal ‘salary’ pay system brings… all while being a legal pay system!