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Employer passing business risk to employees - Florida

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  • Employer passing business risk to employees - Florida

    Is it legal for a employer to pass the risk of doing business to their employees?

    Such as: Setting a labor cost limit per job.

    Each job pays a set amount to the employees, no matter how long it takes them to complete, even if they make less then min wage or the estimator under bid the job.

  • #2
    It is legal for the employer to set the rate of pay. If the employer and employee are subject to minimum wage laws (and there are exceptions based on industry and type of position) then the employee must make the equivalent of MW for the time worked during the week. The law doesn't look at individual jobs performed, but rather overall compensation across the week.
    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.


    • #3
      Agreed. Minimum wage and overtime are examples of statutory law (FLSA). These are rules imposed on the parties by the government. The parties cannot agree to make the rules go away. Piece work (payment based on the job) is not inherently illegal but it cannot make MW, OT or other laws go away. Both MW and OT are determined based on the workweek. Basically if someone is being paid piece work (what you are talking about), they are paid the greater of MW or PW then that number is used for OT purposes.
      "Reality is that which, when you stop believing in it, doesn't go away".
      Philip K. **** (1928-1982)


      • #4
        but is it legal for the employer to change the rate of pay without notice?


        • #5
          piece work is not what I'm talking about. all employees are paid by the hour, but when the labor cost limit is reached then no more pay is given for that job, but the employee must finish the work or not get paid


          • #6
            It is legal for an employer to make you work as long as it takes to get a job done. As previously stated, the employer must pay its employees at least minimum wage for all work done, and overtime for hours over 40 in a work week.

            You do not mention the type of business or your job duties. There are some limited exceptions, also per previous information.

            If your employer is not paying you at least minimum wage for your time worked, you can file a wage claim with the DOL.


            • #7
              If the hourly wage has a limited number of hours, but the job must be completed anyway, then the limit functions the same way as piecework. Regardless, what matters is that the employee is paid at least minimum wage for all hours worked, and an overtime rate for any hours over 40 in a week. Compare that figure to the actual wages paid for the week. If that is not happening, the ee can file a wage claim.

              Typically the notice of a change in hourly rate must be given prior to any of those hours (at the new rate) being worked. States vary on how much notice must be given.


              • #8
                thank you for your help, that only leaves the question what constituents hours worked.

                drive time, loading and unloading trucks, filling out paper work, attending company meetings. exc...


                • #9
                  Hours worked are those hours spent doing the job.

                  Travel time from home to the office or job site and travel time back home are both unpaid, since that is considered part of an employee's commute. Any breaks longer than 20 minutes are unpaid.

                  Mandatory meetings should be paid time. Loading & unloading trucks should be paid time. Filling out paperwork should be paid time.


                  • #10
                    what about travel time from the shop to a job and back, the employee is required to travel to the shop and pick up a company work truck, then take it and a crew to a job site to preform work then back.

                    does the driver and the crew have to be paid for that time? the crew is required to help load that truck before it leaves both ways


                    • #11
                      The job starts when the ee begins working at the shop (i.e., loading the truck). Travel from home to the shop is unpaid, but travel from the shop to the job site, and from the job site back to the shop would all be paid.


                      • #12
                        for just the driver or the entire crew?


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