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PT hourly to be paid lump sum amount. Federal

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  • PT hourly to be paid lump sum amount. Federal

    We have traditionally paid employees a lump sum amount to work a game (time clock, vending, tickets, etc.) A flat rate of $25.00 a game. It was done via a piece of paper, and no hours were recorded. Games usually last 2 - 3 hours.

    We have recently been discussing them entering their time and paying them hourly. The athletics department insists that this is a lump-sum payment of $25.00 a game. We don't want to get in the way of an employee getting to work one of these games (The employee is usually hired FT in a Faculty position), but we would like to avoid the extra work that is involved in processing these as lump sum payments and put the responsibility on the employee to enter hours in the system.

    My question is this. Are we able to record someone's hours as 2.25 hours one day and 3.00 hours another and still pay them $25.00? Would this be ok as long as they are above minimum wage?

  • #2
    If we are talking federal law only, and the law of most states, then the average of hours worked compared against the related earnings must exceed minimum wage. HOWEVER, some states such as CA require each and ever hour meet the minimum wage test.
    "Reality is that which, when you stop believing in it, doesn't go away".
    Philip K. **** (1928-1982)

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    • #3
      Originally posted by DAW View Post
      If we are talking federal law only, and the law of most states, then the average of hours worked compared against the related earnings must exceed minimum wage. HOWEVER, some states such as CA require each and ever hour meet the minimum wage test.
      That's what i was thinking. It is Ohio.

      So in essence, i would be able to say, any hours between increments of 0-3 can be paid at $25.00 per 3 hours. Anything over increments of three hours would be hourly, and we would be safe. At least until our minimum wage rate changes.

      3 x $8.15 = $24.45


      Ohio's minimum wage is 8.15.


      Thank you,

      John

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      • #4
        I am not an Ohio expert, but I am pretty sure they follow the federal method.
        "Reality is that which, when you stop believing in it, doesn't go away".
        Philip K. **** (1928-1982)

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        • #5
          Originally posted by DAW View Post
          I am not an Ohio expert, but I am pretty sure they follow the federal method.
          My company operates in Ohio. It does follow the federal method.

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