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employees paid like subs? Alabama

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  • employees paid like subs? Alabama

    our company has regular hourly employees who have paid benifits work 40 hours a week plus over-time and install countertops...is now considering paying employees like subs (by the square foot) but keeping company benefits and set work day hours. are there any alabama labor laws against this? the employees will not be paid for drive time but by square footage of countertops they install only. if there is no work needed - no pay, or if circumstances beyond the installers control keep them from installing a job they have been given, they are only given a trip charge for their time.

    thanks for your time
    jj

  • #2
    Minimum wage and OT laws still apply, as well as all the regulations in the Fair Labor Standards Act, such as the definition of "hours worked", no matter how the compensation plan is structured.

    Such a method of computation is not illegal in and of itself.
    Last edited by Pattymd; 11-05-2008, 08:38 AM.
    I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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    • #3
      Agreed. This is a "piece work" calculation. This can be legal if done correctly, but like Patty implied, there is basically a two step calculation process. All hours worked need to be tracked then on a workweek basis, MW needs to be calcuated. That result is then compared with the piece work calculation. The larger of the calculations is then used for the overtime calculation.

      There is a chance that the Retail and Service Establishment rules could be applicable, but that has the effect of eliminating overtime but at the cost of raising total compensation to significantly over MW for all hours worked.

      Either way, the employer must track all hours worked and pay at least MW/OT. Failure to do so violates federal FLSA law. I do not know about Alabama laws (not my state) but it could violate some of their laws also.
      Last edited by DAW; 11-05-2008, 09:50 AM.
      "Reality is that which, when you stop believing in it, doesn't go away".
      Philip K. **** (1928-1982)

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      • #4
        Alabama is pretty much a "we don't have any laws of our own, federal law applies" state.
        I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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