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  • new salary position Michigan

    Hello I am hoping to be pointed in the right direction.

    I want to hire medical technicians that are more commonly paid per hour. Their duties will resemble an hourly worker...they perform medical tests, do paperwork, filing, data entry, ect.

    However I want to have controlled costs and I want the tech to not focus on a time clock. Their hours worked will vary and range from just under 40 hours to a few hours past 40.

    Revenue is based on appointments being filled and people keeping them, and the tech does up to 2 appointments per day.

    So I want to a) not go broke if we have a bad week or month and the tech is there doing half as many appointments and b) I want the tech to feel very invested in the success of the company.

    1)I like the idea of Salary, but can it be conditional on low volume?

    2)I have heard of people hiring this type of tech as a contracted employee...but i can't find anything on google where that looks right.

    3)I have also thought about a lower than norm wage with bonuses per completed appointment. That way they have a little gas money if no one shows and they go home early, and if all appointments show they will average out to high pay for a days work.

  • #2
    1. These positions sound like non-exempt positions as defined by law. This means you are legally required to pay them for every hour they work, and at 1.5 times their regular rates if they work more than 40 hours in any given week. It makes no difference whether you're paying them via a salary method or an hourly method. While this may be disappointing to you, the plus side is that you don't have to pay them for any hours they don't work.

    2. It's unlikely that the DOL and the IRS will allow you to classify people you manage as independent contractors. While other employers may do this, they are usually in violation of employment and tax law.

    3. A lower than normal hourly wage is legally allowable, as long as it is at least minimum wage.

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    • #3
      1) I don't understand what salary is if you have to track time to pay 1.5 normal pay or not pay the less of 40 hours?

      2) I thought that sounded shady

      3) so I would be paying bonuses of would it be commission? They don't do anything to bring in appointments, I am just controlling cost. If you can control cost when an appointment isn't filled you can pay more when both are...win win

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      • #4
        All employers would like to control costs. The law however, is designed to also protect the employee. While you can pay a low hourly rate with a bonus for each appointment, that low rate must equal at least minimum wage and those bonuses will need to be calculated as part of the hourly wages for overtime after 40 hours in a week. If the employee has no control over the number of appointments, it is silly to pay a premium for this. I'm not sure why anyone would want to take a job making significantly less than the market rate in the hopes that enough appointments are scheduled that they get paid more.

        If you find you have days where there aren't any appointments scheduled, you can tell the employee not to come in or send them home early.
        I post with the full knowledge and support of my employer, though the opinions rendered are my own and not necessarily representative of their position. In other words, I'm a free agent.

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        • #5
          What you are not grasping is that "salary" is just a pay method and has no legal status or standing of its own. ONLY jobs that meet certain qualifications are allowed by law to be paid on straight salary. If the job duties do not meet those qualifications, then it doesn't matter on what basis you pay them, BY LAW you MUST pay no less than m/w and MUST pay overtime in the rate of 1.5 times their regular hourly rate for hours over 40 in a week.

          The job duties you describe do NOT meet the qualifications to be paid on straight salary. Therefore, while you may (if you choose) pay them on salary for anything up to 40 hours, you still MUST pay the OT hours. If they are worked.

          That is the key if you object to paying overtime. While the law says you MUST pay OT if it is worked, it does not say you must allow them to work OT. If you want to send every employee home after they've worked 40 hours in the week so that they never incur overtime, there's nothing illegal about that. But if it is worked, you MUST pay it since the jobs do not qualify for a straight-salary status.
          The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

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          • #6
            Fairness to the employee dosnt seem to be an issue in that I've asked opinions and am experienced in this field and its actually pretty appealing...

            If you have 0 appointments you'll be at work for 2 hours. If you have one appointment, you'll be there for 10 hours and if you have two appointments you will also be there for 10 hours.

            with my bonus idea, you would make double minimum wage for however long you're there.

            the industry norm is, say, $22 an hour for 10 hours work doing two appointments. If you have one appointment the company takes a hit. So with my bonus idea, it would work out too $20 dollars an hour if you had one appointment and $25 an hour if you had 2 appointments.

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            • #7
              Ok I think I got ya on the salary part now. Thanks
              Last edited by Zackzuse; 05-15-2014, 05:57 AM.

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              • #8
                Whether employees perceive this as fair is not the issue. The issue is obeying the law.

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                • #9
                  So if we want to do the bonus thing then we calculate 40 hours + the number of bonuses,average it to an hourly wage and that wage * 1.5 is their ot rate. So it can be different every week.

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