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How to Pay Delivery Drivers Tennessee

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  • How to Pay Delivery Drivers Tennessee

    Hi!

    A business uses seasonal personnel drivers to make deliveries.

    Interestingly, most of the personnel want to be paid at the conclusion of making deliveries for that day. Is this appropriate for an employer to do that? If so, how can it be done?

    Also, is there a way to properly pay the drivers per delivery instead of paying them an hourly rate? If so, how can this also be done?

    Thanks!

  • #2
    There are a couple of temp agencies that pay some manual laborers at the end of the work day, but as a Payroll Manager for many years, I would never go that route.

    Yes, you can pay per delivery. However, the minimum wage requirement must still be met, and overtime premiums paid when applicable.
    http://www.dol.gov/dol/allcfr/ESA/Ti...CFR778.112.htm (re overtime)

    You are treating them as employees, right?
    I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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    • #3
      Yes, they've been treated as employees. Was caught off guard when some new seasonal employees made such an "end of the day payment" request. It seemed shady...like hiring day workers of which I've no clue how that works.

      Also, thanks for the link reference.

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      • #4
        Originally posted by lltuser View Post
        Is this appropriate for an employer to do that? If so, how can it be done?
        Appropriate? It is not legally required (you need only comply with the state's requirements for pay frequency and how long after the end of the pay period the pay must be made). I can only imagine the problems involved in paying daily, although it is a "selling point" for a very large national temp agency. Their markups are huge, partially to offset the cost of operating that way.

        How would you do it? I suppose one way is that you would have some payroll clerk waiting at the end of the day to get the time cards and he/she would cut a check right then while the employee waits. The employees would be happier if you were able to convert the check into cash right then. They sign over the check to someone (preferably not the payroll clerk) and that person gives them the cash.

        Almost all of our temps are paid weekly, even though state law allows bi-weekly and semi-monthly. Casual laborers (those not working on a regular temp assignment, but working more or less as needed) get paid every Friday with the work week ending on Thursday.

        You do not have to bow to the demands of the drivers for daily pay. I would think that the headache of replacing those that quit as a result are far less then the costs and problems of paying daily.
        Senior Professional in Human Resources and Certified Staffing Professional with over 30 years experience. Any advice provided is based upon experience and education, but does not constitute legal advice.

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        • #5
          Good points. Thanks!

          Comment

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