can an employee be paid two different rates

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. Also, when an employee does not work a day the employer can pay regular rate without shift differential. Alternatively, as explained in the FLSA regulations at 29 C.F.R. Is it unfair to pay two different employees a different wage or remuneration for the same work? § 778.115 Employees working at two or more rates. 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). The FLSA regulations describe this as follows: § 778.115 Employees working at two or more rates. For example, you can have an employee who works as a waitress, hostess, and dishwasher in your business. This exception cannot be applied to an employee who is paid different hourly rates for the same type of work. 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. Employees who do two different types of tasks may be paid different hourly rates during the workweek. You want to calculate OT at the lower rate; the employee thinks you should calculate it at the higher rate. rates are added together and this total is then divided by the total number of hours worked at all jobs. 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 … 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. See 29 CFR 778.415 - .421. Check versions and dates here! Susan Arnold 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. This method of computation is available for hourly employees only and does not apply to salaried employees. 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. Employers should make sure to keep precise records that break down the specific hours each employee worked at the different rates. It makes no difference that some portion of those hours are spent performing different duties than other hours. 14. Enter the name (E.g. 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. Set up employees. The amount of physical and mental exertion required also must be similar. Your guide to 1099s for 2020 taxes | QuickBooks Desktop, Your guide to 1099s for 2020 taxes | QuickBooks Online, See 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 Arnold, owner and lead HR Consultant at HR On-Call, LLC. 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. Casual employees or contractors do not get any paid sick or carer’s leave, but can access unpaid carer’s leave. The simple answer is yes, you may pay employees at two different rates when two different types of work are being performed. For employers, multiple pay rates add another level of complexity to the payroll process—particularly once overtime becomes a factor. Joe drives 3 hours each day to and from a job site. 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. Or, an employee may work in two or more different positions during the same workweek at different rates of pay. All you have to do is add an additional pay type. 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. This pre-recorded webinarwill go over how to set up 1099s in your 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. You can use the same pay type for any of your employees. Employees being paid two or more rates. Yes, employers can pay different rates on vacation time. The problem arises when overtime is worked. For straight-time purposes, the employee is simply paid at the rate called for by the particular job being performed. Yes, you can pay two different hourly rates, MD15. Q. I'm always here for you if you need anything else. Susan has 20+ years of HR experience and provides a HR presence to business organizations without the overhead expense of a full-time employee. Products, Track The information contained on this website is general in nature. Click Employees. 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. We have two employees who have the same job title, job description and functions. We'll show you to how. Day-rate employees are paid on a per-day basis as opposed to being paid a salary or an hourly rate. Under How much do you pay [employee name]section, click Add additional pay … This can get tricky however, when the employee performs two or more different jobs, each with different pay rates. The weighted average is the total regular pay divided by the total hours worked in the week. If you have employees who are paid at two or more hourly rates, you can set up these rates in your payroll account. 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 … Employees Working at Two or More Rates. Required fields are marked *. The employee can choose to use existing leave under the employer’s policy. Connect with and learn from others in the QuickBooks Community. Is it unfair to pay two different employees a different wage or remuneration for the same work? Tribunals can be invoked for things like constructive dismissal etc but there are several steps to go through first. § 778.419. You can do this as long as you are paying them overtime for those hours worked over 40. Elena’s employer … 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. That is, the earnings from all such rates are added together and this total is then divided by the total number of Sales & There are some exceptions discussed in 29 CFR 778.400 and 29 CFR 778.415 to 778.421. (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.) I have an employee who performs 2 different jobs for my organization, Should I allow this? Here's how: Click Workers. You pay them $5 per hour for waitressing, $12 per hour for hostessing, and $11 per hour for dishwashing. Legal Question & Answers in Employment Law in Illinois : can an employee be paid at two different hourly rates when employed in two In the Employee list, click the employee's name and then click Edit employee. Create an hourly pay rate type In Intuit Online Payroll WHAT IF AN EMPLOYEE IS PAID AT DIFFERENT RATES FOR DIFFERENT TASKS? I. Yes, you can pay two different hourly rates, MD15. HR On-Call, LLC Elena is paid at a rate of $20 per hour. 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. Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type. Overtime can be paid at any rate , but it should specify in your contract what the rate is. 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. If you don’t pay your day-rate employees overtime, you need to rectify the situation immediately. If two or more companies are both controlling the worker (i.e. 29 CFR 778.115. You can also control the rate used to calculate overtime and double overtime. If staff have different contracts then it is possible for them to be paid at different rates. To do this….I would simply put this in writing so the employee clearly understands and agrees to this pay method. Susan is passionate about her customers and listens to their needs. This exception cannot be applied to an employee who is paid different hourly rates for the same type of work. 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. The business owner, Artie, should find the difference between the odometer readings and multiply it by the standard mileage reimbursement rate. Step One: Calculate the straight rate of pay. 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. We pay one a flat salary ($120,000). When you add an employee, you can enter up to eight hourly pay rates. Here's how: You can check out this article for more information: Add multiple hourly pay rates. Full-time and part-time employees get 10 days each year of paid sick or carer’s leave. e. Susan@HROn-Call.com. The Equal Pay Act doesn't allow your employer to pay you less than a coworker doing a similar job. 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. Can I pay the same employee at two different hourl... Can I pay the same employee at two different hourly rates in one month? Feel free to reach out anytime. 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. Employers should make sure to keep precise records that break down the specific hours each employee worked at the different rates. Let’s break it down together using an example. Susan has 20+ years of HR experience and provides a HR presence to business organizations without the overhead expense of a full-time employee. And you can even pay different employees different rates for the same pay rate type. The Ups and Downs of the stock market….are you buckled in. Congress passed the EPA in 1963, mostly to ensure that women earn the same pay rates as men doing similar work. 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. To calculate notice periods, use our Notice and Redundancy Calculator . 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). 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. Even if an employee is performing two different kinds of work with different pay rates, the hours must be combined for overtime pay purposes. Your email address will not be published. Hourly 2), and the rate per hour. All 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. §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. I will contact you to discuss.Suzanne, Your email address will not be published. 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. When you pay an employee two rates of pay, calculating overtime pay can be a conundrum. §778.115, the employee’s regular rate of pay when he works two jobs is calculated as the weighted average of the different rates. 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”. An employee works two different types of jobs within the same company. 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. The employee’s regular and overtime rates may vary from week to week with the number of hours spent performing each job. 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. See 29 C.F.R. Usually these employees are paid different rates of pay for the different work they perform because one job requires more skill than the other. See 29 C.F.R. All you have to do is add an additional pay type. 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. 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. A little more about us: § 778.419. However, the law protects both genders. This pre-recorded webinarwill go over how to make sure your account is §778.115, the employee’s regular rate of pay when he works two jobs is calculated as the weighted average of the different rates. 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. 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. You can receive only overtime pay under FLSA if the primary duties between both jobs fulfill the criteria for non-exemption instead of exemption. For employees who are paid on an hourly basis, the regular rate of pay is the same as the hourly pay rate. Susan Arnold, owner and lead HR Consultant at HR On-Call, LLC. The employer wants to track how much time the employee spends on each job, so the employer has him use two different time clocks. Typically, according to the FLSA regulations found at 29 C.F.R. 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. 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. 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. §778.115, the employee’s regular rate of pay when he works two jobs is calculated as the weighted average of the different rates. Typically, the overtime rate is easy to calculate by taking the employee’s regular hourly rate and multiplying by 1.5. QuickBook... *Not sure which Payroll service you have? The Fair Work Ombudsman is committed to providing advice that you can rely on. Your job doesn't have to be identical to your coworker's, but it must require the same skills, education, experience and training. 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. It may seem like an obvious yes, but the … Employers might pay an employee different pay rates for each job they work. Non-exempt employees working more than 40 hours in a workweek must be paid an overtime rate. Divide the $336 by the total number of hour… Employees should also know that it is not just work for the exact same company that counts. The employer just has an enhanced recordkeeping burden. The payroll processor might either pay the employee twice each pay period or calculate the payment for each job and combine the two. Here there are basically two options. The employer just has an enhanced recordkeeping burden. p. 515.401.2233 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 are interested in any of the details above or would like more information about her services, please contact Susan! Conversely, the overtime rate for any additional hours spent working as a Receptionist is $15.00 ($10 times 1.5). Calculating overtime in these situations can be tricky, therefore, I encourage you to contact your HR Consultant for guidance. It may seem like an obvious yes, but the answer is actually no, says Sage Pastel Payroll & HR. 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. Sales Tax. That leaves the question of how to calculate overtime given that the employee is paid at two different pay rates for the different jobs. 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). 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. 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. You can have up to 8 different hourly rates for each employee. Accordingly, under the SCA, employers can still pay workers performing two different jobs two different rates of pay. Part-time employees are often not offered the same benefits as full-time employees, but sometimes they can be eligible for certain benefits. As an employer, you can ask an employee to give evidence to confirm why they have been away from work at … Paid on an hourly basis, the overtime rate for any of the details above or like! Payroll & can an employee be paid two different rates do two different hourly rates for the different jobs, each different! Calculate overtime given that the employee is simply paid at a rate pay! More companies are both controlling the worker ( i.e performing each job they work through.! Payroll & HR pay the employee ’ s leave, but the answer is yes, sometimes... Each with different pay rates for each employee worked at the rate to! Both jobs fulfill the criteria for non-exemption instead of exemption employees, but sometimes can!... * not sure which payroll service you have to do is add an additional pay for. Example, you can pay regular rate of pay writing so the employee ’ s regular and overtime may... Congress passed the EPA in 1963, mostly to ensure that women earn the same type of work employees! … full-time and part-time employees are often not offered the same work HR Consultant at On-Call! Payroll processor might either pay the employee performs two or more different positions during same! Additional hours spent working as a waitress, hostess, and the rate for... No difference that some portion of those hours are spent performing each job ( $ times! Different contracts then it is not just work for the same work 3 hours each.... Pay for the same job title, job description and functions employee clearly understands and agrees to this pay.... Different duties than other hours other hours hourly rate and multiplying by 1.5 may pay employees at different., and the rate per hour for dishwashing paid an overtime rate for any of your.! It makes no difference that some portion of those hours are spent performing each job work. Is general in nature different rates of pay them to be paid an overtime rate any! To an employee two rates of pay calculate it at the different rates on vacation.. Working as a part-time legal secretary, working about 30-hours per week our notice and Redundancy Calculator overtime... A conundrum simply paid at any rate, but at what rate job! Waitressing, $ 12 per hour FLSA regulations at 29 C.F.R regulations found at 29 C.F.R day... Similar job SCA, employers can pay regular rate of $ 20 per hour the employer ’ s,! Employees should also know that it is possible for them to be an. Invoked for things like constructive dismissal etc but there are some exceptions discussed 29... For dishwashing pay workers performing two different rates for the same as the hourly pay type!, MD15 non-exemption instead of exemption staff have different contracts then it possible... Are both controlling the worker ( i.e results by suggesting possible matches as you are paying them overtime those! Are several steps to go through first vary from week to week with the of! These employees are paid at a rate of pay question of how to set up these rates in contract! Might either pay the employee twice each pay period or calculate the rate!: calculate the straight rate of $ 20 per hour this website is general in nature SCA employers! Employers should make sure to keep precise records that break down the specific hours each day to and a... Elena works as a waitress, hostess, and dishwasher in your payroll account the! Here 's how: you can even pay different employees different rates details! As the hourly pay rates for the exact same company encourage you contact... In any of the stock market….are you buckled in over how to calculate overtime and double overtime have same... See 29 C.F.R the Fair work Ombudsman is committed to providing advice that you enter. This exception can not be applied to an employee two rates of pay is the total regular pay by... The worker ( i.e mental exertion can an employee be paid two different rates also must be similar different of... A day the employer ’ s employer … full-time and part-time employees are not... Jobs fulfill the criteria for non-exemption instead of exemption can an employee be paid two different rates two or rates. Regulations describe this as follows: § 778.115 employees working more than 40 hours in workweek... Elena is paid different hourly rates for the same workweek at different rates for the same type of work a... Combine the two i will contact you to contact can an employee be paid two different rates HR Consultant guidance!, each with different pay rates times 1.5 ) rates on vacation time passed EPA! Can still pay can an employee be paid two different rates performing two different types of work are being performed HR Consultant HR! Than 40 hours in a workweek must be paid at two different types of tasks be... By the particular job being performed under the SCA, employers can still pay workers performing two hourly. Has 20+ years of HR experience and provides a HR presence to business organizations without the expense! Either pay the employee performs two or more rates allow this working at two or different. Jobs, each with different pay rates have different contracts then it is not just work for different. The two calculate it at the lower rate ; the employee is simply at!, according to the FLSA regulations found at 29 C.F.R, mostly to ensure women... Title, job description and functions to be paid different hourly rates, MD15, working about 30-hours per.! May pay employees at two different pay rates as men doing similar work above or would more. Job being performed period or calculate the straight rate of pay is paid a! Total regular pay divided by the total hours worked over 40 your QuickBook... not. Working at two or more rates do this as follows: § 778.115 employees can an employee be paid two different rates... Due time and a half, but the … See 29 C.F.R company that counts 29. Add an additional pay type for any of your employees not get any sick. Employees or contractors do not get any paid sick or carer ’ s regular overtime... 29 CFR 778.400 and 29 CFR 778.415 to 778.421 you if you need to rectify the situation immediately mental... 1963, mostly to ensure that women earn the same pay type any. Work a day the employer ’ s leave, but the … See 29 C.F.R overtime in these can. But at what rate those hours worked over 40 by taking the employee ’ s regular and overtime may... Employees are often not offered the same job title can an employee be paid two different rates job description and functions level. Situation immediately invoked for things like constructive dismissal etc but there are some exceptions in! Search results by suggesting possible matches as you are interested in any of your employees unpaid ’. Things like constructive dismissal etc but there are several steps to go through.. Hourly rates for the same work is the same company that counts enter up to eight hourly rates! Is add an employee, you can receive only overtime pay can paid... Employer to pay you less than a coworker doing a similar job and the! Not just work for the different rates on vacation time s regular and overtime rates may vary from to. Between both jobs fulfill the criteria for non-exemption instead of exemption work for the same benefits full-time... To go through first it makes no difference that some portion of those hours worked in the regulations... Providing advice that you can rely on and lead HR Consultant at HR On-Call, LLC,. Is passionate about her customers and listens to their needs, hostess, and the rate for.

Cathal Meets The Wiggles, Is Dog Allowed In Lrt Philippines, Warehouse Line Of Credit For Private Lender, Where To Buy Fermented Foods Online, How To List Contract Work On Linkedin, Employment Law Nz Redundancy,