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Hourly Pay vs Project Pay Illinois

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  • Hourly Pay vs Project Pay Illinois

    I am an hourly employee with a company who has decided to compensate us with a flat "project pay" instead of our hourly wage for certain projects. They make us clock in normally for these jobs. For a few projects I was never notified that I was not going to receive my hourly wage but instead got the project pay which is a huge reduction from what I normally get. Would this make me an independent contractor or an hourly employee? And can they legally do this?

    Thanks

  • #2
    Based solely on what you have said so far, you are still an employee, but it is worth checking. If your employer is going to claim that you are an independent contractor, then they would have you fill out a W-9, would stop withholding taxes from the payments, and give you a 1099 at year end. Has any of those things happened?

    If not, then you are still an employee, but your compensation method has changed. Short answer is that each week you (probably) have to be paid at least minimum wage and overtime (when applicable). There is nothing that says an employer cannot change your compensation method on a go forward basis as long as statutory requirements (MW/OT) are met.
    "Reality is that which, when you stop believing in it, doesn't go away".
    Philip K. **** (1928-1982)

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    • #3
      And a retroactive change in pay practice (cut) is generally taboo.

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      • #4
        Thanks for the responses. I have never been given a 1099 by my employer. They do also take taxes out of the project pay and it is a separate line on my pay stub.

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        • #5
          So they are treating you as an employee and you are subject to employee specific law such as FLSA. For each workweek, are you being paid (at least) minimum wage and overtime (if applicable)?
          "Reality is that which, when you stop believing in it, doesn't go away".
          Philip K. **** (1928-1982)

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