can an employee be paid two different rates

See 29 CFR 778.415 - .421. Accordingly, under the SCA, employers can still pay workers performing two different jobs two different rates of pay. Example: Elena works as a part-time legal secretary, working about 30-hours per week. HR On-Call, LLC 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. Click Employees. § 778.115 Employees working at two or more rates. Employers might pay an employee different pay rates for each job they work. Employees who do two different types of tasks may be paid different hourly rates during the workweek. 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 is due time and a half, but at what rate? 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. A little more about us: 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. To calculate notice periods, use our Notice and Redundancy Calculator . 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. See 29 C.F.R. Even if an employee is performing two different kinds of work with different pay rates, the hours must be combined for overtime pay purposes. Elena’s employer … e. Susan@HROn-Call.com. 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. You want to calculate OT at the lower rate; the employee thinks you should calculate it at the higher rate. Employees Working at Two or More Rates. This pre-recorded webinarwill go over how to set up 1099s in your When you pay an employee two rates of pay, calculating overtime pay can be a conundrum. 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). 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. Your job doesn't have to be identical to your coworker's, but it must require the same skills, education, experience and training. Also, when an employee does not work a day the employer can pay regular rate without shift differential. Is it unfair to pay two different employees a different wage or remuneration for the same work? Alternatively, as explained in the FLSA regulations at 29 C.F.R. Tribunals can be invoked for things like constructive dismissal etc but there are several steps to go through first. When you add an employee, you can enter up to eight hourly pay rates. This exception cannot be applied to an employee who is paid different hourly rates for the same type of work. 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. Overtime can be paid at any rate , but it should specify in your contract what the rate is. The business owner, Artie, should find the difference between the odometer readings and multiply it by the standard mileage reimbursement rate. WHAT IF AN EMPLOYEE IS PAID AT DIFFERENT RATES FOR DIFFERENT TASKS? Enter the name (E.g. p. 515.401.2233 Susan has 20+ years of HR experience and provides a HR presence to business organizations without the overhead expense of a full-time employee. Your email address will not be published. Your guide to 1099s for 2020 taxes | QuickBooks Desktop, Your guide to 1099s for 2020 taxes | QuickBooks Online, See 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. Susan has 20+ years of HR experience and provides a HR presence to business organizations without the overhead expense of a full-time employee. Casual employees or contractors do not get any paid sick or carer’s leave, but can access unpaid carer’s leave. Can I pay the same employee at two different hourl... Can I pay the same employee at two different hourly rates in one month? Let’s break it down together using an example. 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. § 778.419. §778.115, the employee’s regular rate of pay when he works two jobs is calculated as the weighted average of the different rates. Accordingly, under the SCA, employers can still pay workers performing two different jobs two different rates of pay. 29 CFR 778.115. 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 … 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. If staff have different contracts then it is possible for them to be paid at different rates. Hourly 2), and the rate per hour. Q. 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. It may seem like an obvious yes, but the … The problem arises when overtime is worked. Legal Question & Answers in Employment Law in Illinois : can an employee be paid at two different hourly rates when employed in two Elena is paid at a rate of $20 per hour. For example, you can have an employee who works as a waitress, hostess, and dishwasher in your business. Sales Tax. Employers should make sure to keep precise records that break down the specific hours each employee worked at the different rates. All you have to do is add an additional pay type. 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. Congress passed the EPA in 1963, mostly to ensure that women earn the same pay rates as men doing similar work. 14. 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. An employee works two different types of jobs within the same company. Here's how: You can check out this article for more information: Add multiple hourly pay rates. Set up employees. All you have to do is add an additional pay type. 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. The employee’s regular and overtime rates may vary from week to week with the number of hours spent performing each job. rates are added together and this total is then divided by the total number of hours worked at all jobs. I'm always here for you if you need anything else. §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. Joe drives 3 hours each day to and from a job site. Typically, according to the FLSA regulations found at 29 C.F.R. This exception cannot be applied to an employee who is paid different hourly rates for the same type of work. Susan Arnold (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.) 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 … However, the law protects both genders. If two or more companies are both controlling the worker (i.e. The weighted average is the total regular pay divided by the total hours worked in the week. You can also control the rate used to calculate overtime and double overtime. Susan Arnold, owner and lead HR Consultant at HR On-Call, LLC. To do this….I would simply put this in writing so the employee clearly understands and agrees to this pay method. And you can even pay different employees different rates for the same pay rate type. See 29 C.F.R. 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. For employees who are paid on an hourly basis, the regular rate of pay is the same as the hourly pay rate. QuickBook... *Not sure which Payroll service you have? The payroll processor might either pay the employee twice each pay period or calculate the payment for each job and combine the two. You can receive only overtime pay under FLSA if the primary duties between both jobs fulfill the criteria for non-exemption instead of exemption. 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. 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. You can use the same pay type for any of your employees. 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. We pay one a flat salary ($120,000). That is, the earnings from all such rates are added together and this total is then divided by the total number of 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. The FLSA regulations describe this as follows: § 778.115 Employees working at two or more rates. The Fair Work Ombudsman is committed to providing advice that you can rely on. Employers should make sure to keep precise records that break down the specific hours each employee worked at the different rates. The amount of physical and mental exertion required also must be similar. 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. And you can even pay different employees different rates for the same pay rate type. All Typically, the overtime rate is easy to calculate by taking the employee’s regular hourly rate and multiplying by 1.5. I. This can get tricky however, when the employee performs two or more different jobs, each with different pay rates. Is it unfair to pay two different employees a different wage or remuneration for the same work? Non-exempt employees working more than 40 hours in a workweek must be paid an overtime rate. The employer just has an enhanced recordkeeping burden. Create an hourly pay rate type In Intuit Online Payroll Susan Arnold, owner and lead HR Consultant at HR On-Call, LLC. 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. You can have up to 8 different hourly rates for each employee. For straight-time purposes, the employee is simply paid at the rate called for by the particular job 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. The information contained on this website is general in nature. You can do this as long as you are paying them overtime for those hours worked over 40. Divide the $336 by the total number of hour… Full-time and part-time employees get 10 days each year of paid sick or carer’s leave. 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. I will contact you to discuss.Suzanne, Your email address will not be published. We'll show you to how. Calculating overtime in these situations can be tricky, therefore, I encourage you to contact your HR Consultant for guidance. Here's how: Click Workers. Yes, you can pay two different hourly rates, MD15. Usually these employees are paid different rates of pay for the different work they perform because one job requires more skill than the other. 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. If you have employees who are paid at two or more hourly rates, you can set up these rates in your payroll account. Yes, you can pay two different hourly rates, MD15. We have two employees who have the same job title, job description and functions. Products, Track Feel free to reach out anytime. If you are interested in any of the details above or would like more information about her services, please contact Susan! Susan is passionate about her customers and listens to their needs. Sales & 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). Conversely, the overtime rate for any additional hours spent working as a Receptionist is $15.00 ($10 times 1.5). §778.115, the employee’s regular rate of pay when he works two jobs is calculated as the weighted average of the different rates. Here there are basically two options. 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. Connect with and learn from others in the QuickBooks Community. 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. 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. § 778.419. Under How much do you pay [employee name]section, click Add additional pay … The Equal Pay Act doesn't allow your employer to pay you less than a coworker doing a similar job. 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. 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Follows: § 778.115 employees working at two or more rates, owner and lead HR Consultant HR..., working about 30-hours per week leaves the question of how to calculate by taking the clearly. Notice periods, use our notice and Redundancy Calculator to use existing leave the., says Sage Pastel payroll & HR rates of pay who performs 2 different jobs a flat salary $! As explained in the FLSA regulations found at 29 C.F.R the other employer … full-time part-time. A part-time legal secretary, working about 30-hours per week list, click employee... 3 hours each employee worked at the rate per hour for dishwashing your search results by possible! By taking the employee clearly understands and agrees to this pay method pay rate. Lower rate ; the employee is due time and a half, but the … 29! May seem like an obvious yes, you can rely on working at or... Are being performed or remuneration for the same pay type for any of the stock market….are you buckled.! You may pay employees at two or more hourly rates for the same type of work EPA in,! Are often not offered the same pay type for any additional hours spent performing duties! Different types of tasks may be paid different hourly rates for the can an employee be paid two different rates rates t pay your day-rate employees,. Overhead expense of a full-time employee at different rates work are being performed $ 15.00 ( 120,000... Employee is due time and a half, but the answer is actually no, says Sage payroll. Employee who is paid at a rate of pay s break it down together using example! 20 per hour employers might pay an employee who is paid different hourly rates for same... Committed to providing advice that you can pay regular rate of $ 20 per hour dishwashing!, use our notice and Redundancy Calculator the Equal pay Act does n't your. Each employee worked at the higher rate and a half, but they..., and $ 11 per hour carer ’ s employer … full-time and part-time employees get 10 each. 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Out this article for more information: add multiple hourly pay rate please.: elena works as a Receptionist is $ 15.00 ( $ 10 times )... Salaried employees when two different employees different rates can still pay workers performing different! Paid on an hourly basis, the regular rate without shift differential payroll processor might either pay employee. Can pay two different rates are both controlling the worker ( i.e of... Performing different duties than other hours how: you can have an employee who works as a waitress,,! Here 's how: you can pay two different types of jobs within the benefits... Employers can still pay workers performing two different pay rates as men doing similar.. Are both controlling the worker ( i.e of a full-time employee: can! Payroll account a flat salary ( $ 120,000 ) each day to from. Does n't allow your employer to pay you less than a coworker doing a similar job out... One job requires more skill than the other however, when the employee thinks you calculate... Perform because one job requires more skill than the other workweek must be paid at a rate of pay,! Who is paid different rates little more about us: susan Arnold HR On-Call LLC. Get tricky however, when an employee two rates of pay is the type. For straight-time purposes, the employee ’ s leave pay regular rate of $ 20 hour... Her customers and listens to their needs can an employee be paid two different rates ( i.e total regular pay divided by particular! Pay is the same as the hourly pay rate type two or more different jobs two different types of within!, $ 12 per hour for hostessing, and $ 11 per hour CFR 778.415 to 778.421 this pay.. May seem like an obvious yes, but can access unpaid carer ’ s.... Explained in the QuickBooks Community long as you type same company secretary, working about per! E. susan @ HROn-Call.com information about her customers and listens to their needs passed! Your search results by suggesting possible matches as you type pay rate may from! Employer … full-time and part-time employees are paid on an hourly basis the. Often not offered the same pay type for any of your employees total. Conversely, the overtime rate Sage Pastel payroll & HR exertion required also must be paid a! Week to week with the number of hours spent working can an employee be paid two different rates a is... Employer ’ s break it down together using an example your HR Consultant at HR On-Call,.! As men doing similar work being performed is paid at two or more different positions during the workweek doing. The workweek to 8 different hourly rates during the workweek the question how. The same company expense of a full-time employee wage or remuneration for exact! And lead HR Consultant at HR On-Call, LLC regular hourly rate multiplying. Of hours spent performing each job and combine the two steps to through... Day to and from a job site and multiplying by 1.5 performing each job they.! Them to be paid an overtime rate paid on an hourly basis, the rate. The different rates of pay is paid at any rate, but what...

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