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? on min wage with commission / bonus Nebraska

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  • ? on min wage with commission / bonus Nebraska

    I really want to pay my good employees more than my bad ones -- just like we all do with servers in restaraunts, bars, etcetera.

    To this end, I have implemented a program where employees review their job performance at the end of every pay period and then they meet with their supervisor who also reviews them. (This has helped point out some significant disparities in how the employee viewed their performance versus what their supervisor thought.)

    The employees are then paid a bonus based on tehir average ranking factored against their potential bonus. For example, maybe they were ranked on 20 items (each on a scale of 1 to 10) and their average was 5. That means that they get 50% of the bonus offered times the number of hours they worked. For one position, the bonus is $4.50 per hour, so if they averaged a 5 and that was their position, then they get 1/2 of $4.50 -- $2.25 -- for each hour they worked.

    The challenge is that I really want to pay the good people more and reward them because they do make a difference, but I also want to pay the bad people less. I want to ones who are horrible to earn minimum wage so they get the message to either improve or leave -- plus it gives me more room to pay the good ones more for their good work.

    If I had it my way, I would pay something like a $3 base and then offer a $9 bonus. On that scale I really could pay the bad ones minimum wage ($3 per hour plus a minimum bonus that would bring them up to the legal minimum wage), thereby freeing up money so the good ones can be paid $12 ($3 per hour plus a $9 per hour bonus).

    Is it legal in Nebraska to pay a blended hourly and bonus as long as the total is not below minimum wage? Do I need to call it "hourly and commission" or can I call it "hourly and bonus"?

    Any help would be appreciated.

  • #2
    I am in now way a lawyer however I worked for a resturaunt through school that we were paid more or less for our work habits by schedualing. It was called a Top six Bottom Six shift.If there were 12 serversers on the floor than the schedual would read 1-6. It determined what time you would come into work, making more money the time spent there with the sections. This is the breakdown.
    1 came in first had resturaunt full hour alone
    2 came in resturaunt split in half
    3 and 4 came together and was now we had 4 sections one and two having the best
    5 and 6 came and tables were again divinding
    and than the rest came in.
    When it slowed manager on duty would call top 6 and that meant the bottom 6 were cut and sections went back to when 5 and 6 came in
    than top four would meant 5 and 6 go home and so on.
    Now it sounds like alot of table switching BUT once the tables that the tops had got up they would go to the respective server. This made the servers in top 6 great money beacuse they had the better sections all night, the ones people always want to sit at, corners, or large tables. It sounds complicated but if you would like more info on it I would liek to hear more from you if you want to email me. The kitchen also had a schedual like this as well. To most people its the hours they want not always the pay, everyone wants more pay and cant always get it, but they can always get and love to get more hours.
    Hope this helps

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    • #3
      You can call it anything you like, as long as the average hourly rate (including declared tips) is at least minimum wage. However, you cannot retroactively decrease an employee's base rate after they have worked the hours.
      I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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