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Bonuses for Hourly

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  • Bonuses for Hourly

    I have a WV retail business. We are simular to a car dealership. We have a sales dept and service dept. We would like a way to pay our shop repairmen a bonus based on our monthly efficiency reports. Efficiency is based on how long it takes them to do a repair correctly. We currently pay them hourly. We want to give a bonus once a month to the employee with highest efficiency and a yearly bonus to the highest efficiency rating.

    Can we give that employee a day off the following month with regular 8 hr pay as the bonus for having the highest rating and a week off with a regular 40 hour paid to the shop employee with the highest rating for the year?

    Now our employees get a lot of overtime and we pay time and a half. But I think I understand that if you pay for time not worked you only have to pay the regular hourly rate of pay of those hours only, regardless of how many actual hours they worked.

    Also another issue with this. We do not offer paid vacation as a benefit. This would be special for just the shop employees to help motivate. The other employees in the different departments would not have this. However, we would view it as not being a benefit because only the highest efficiency shop employee would receive it.

    The other option we were considering is to just pay the employee the additional 8 hours of hourly rate of pay as their bonus. However we would like to do it one time that month instead of on a weekly basis.
    Is this possible? If not do you have any suggestions.

  • #2
    Yes, you can give paid time as a bonus.

    And you are correct about the paid time off, it does not have to add towards the overtime worked within the week.

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