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Company taking flat rate hours Kentucky

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  • Company taking flat rate hours Kentucky

    I work for a supposed "flat rate" shop, although we are guaranteed 40 hours pay per week, we are required to bill out 60 hours a week. I'm wanting to know if how they are paying is legal. Everyone makes $20 per hour flat rate. So let's say you bill out your required 60 hours. You get paid your guaranteed 40.. But they do not pay you for the 10 hours billed between your 40th and 50th hour. (Claiming that's what it cost to keep you here) but once you get over 50 hours they pay you $6 per hour billed. So basically you are paid $20 per hour for your first 40 hours, not paid at all for the hours between 40-50, and $6 per hour for hours over 50, which to them is considered "bonus pay".
    So $20x40=$800 (first 40)
    $0x10=$0 (hours between 40-50)
    $6x10=$60 ( 10 hours between 50-60)
    Grand total of $860 dollars and 60 flat rate hours billed. Is this even a legal way to pay employees?

  • #2
    Flat or flag rate shops seem to be legal under FLSA so long as the end result is consistent with min wage + OT .
    Some state wage laws such as in CA which address pay for each hour might get to a different conclusion..but I don't know if it runs afoul of any KY wage/hr issues.

    I presume you mean if you work 44 but bill 60 you are paid the 60 as per your plan?

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    • #3
      The government (federal and state) does not care about hours billed. Period. They care about hours worked and payments based on hours worked. If we are talking federal law only (FLSA), then the feds care about MW and they care about OT, and nothing else. Lets say that Bob is supposedly paid $20/hr. For the first 40 hours worked in the workweek, the feds care about $7.25/hr, and they care nothing about the remaining $12.75/hr. In hours worked past 40 in the workweek, it gets complicated. The feds care about MW, and they care about the OT premium based on Regular Rate of Pay, but still do not care about anything else.

      KY is not my state, and I will l let someone else address those laws.
      "Reality is that which, when you stop believing in it, doesn't go away".
      Philip K. **** (1928-1982)

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      • #4
        Originally posted by Raster View Post
        Flat or flag rate shops seem to be legal under FLSA so long as the end result is consistent with min wage + OT .
        Some state wage laws such as in CA which address pay for each hour might get to a different conclusion..but I don't know if it runs afoul of any KY wage/hr issues.

        I presume you mean if you work 44 but bill 60 you are paid the 60 as per your plan?
        We only work 40 hours a week and are required to bill 60 hours in order to keep a job. Out of those 60 hours the first 40 hours are fully compensated at $20 per hour, 10 hours we are not compensated for at all and the other 10 we are compensated at a rate of $6 per hour. I know it's an unusual pay scale and hard to follow. Basically just trying to understand how them not paying us for 10 of the hours we bill is ok.

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        • #5
          How many hours do you actually work? 40 or 60?
          It doesnt matter how many you bill but how many you actually work.
          I find that the harder I work, the more luck I seem to have.
          Thomas Jefferson

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          • #6
            Originally posted by Morgana View Post
            How many hours do you actually work? 40 or 60?
            It doesnt matter how many you bill but how many you actually work.
            We work 40 hours. I understand it doesn't matter how many hours you bill. My concern is the 10 hours a week I'm not being compensated for.

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            • #7
              If you are only working 40, they legally only need to pay you for 40. Period. What they bill clients is not relevant. If they pay you anything for billing more than you work, that is a bonus and how it is structured and the rate is totally up to the company.
              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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              • #8
                Originally posted by ElleMD View Post
                If you are only working 40, they legally only need to pay you for 40. Period. What they bill clients is not relevant. If they pay you anything for billing more than you work, that is a bonus and how it is structured and the rate is totally up to the company.
                Ok So if they are not required to pay it, then we shouldn't be required to bill the extra time, and the people who have been terminated for not billing the extra time were wrongfully terminated?

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                • #9
                  No and no.

                  1. Billing is legally unrelated to paying employee. You have no recourse here because you are not a legally injured party. The customer may or may not be legally injured but you are not.

                  2. For an illegal termination to occur an actual law must be broken. Telling employees to bill whatever is almost certainly legal, and terminating an employee for failing to follow legal instructions is almost certainly legal (Employment At Will).
                  "Reality is that which, when you stop believing in it, doesn't go away".
                  Philip K. **** (1928-1982)

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                  • #10
                    Originally posted by DAW View Post
                    No and no.

                    1. Billing is legally unrelated to paying employee. You have no recourse here because you are not a legally injured party. The customer may or may not be legally injured but you are not.

                    2. For an illegal termination to occur an actual law must be broken. Telling employees to bill whatever is almost certainly legal, and terminating an employee for failing to follow legal instructions is almost certainly legal (Employment At Will).
                    That makes no sense to me. I have never worked a flat rate job like this before. We are paid per job not hourly. So it's perfectly legal to be required to reach a certain amount of hours per week and only paid for a partial amount of those hours billed? Any other flat rate shop I have worked, you got paid what you billed. If you billed 13 hours in a week you got 13 hours of pay and if you billed 70 hours, you got 70 hours of pay. Is this a loop hole they use because even though it's flat rate, they guarantee you at least 40 hours a week?

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                    • #11
                      You get paid only for what you work. Period. What you bill customers for is separate and the law really doesn't care one bit. What your employer requires you to document is also not something the law cares about. It is just like any other job duty. The law only looks at how many hours you are actually performing work. The law also doesn't care what they pay you if you are making at least minimum wage and working not more than 40 actual hours a week. Every hour need not be paid at the same rate either, so long as the average means you make at least minimum wage for the 40 hours you actually worked.
                      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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