Employee hrs. over 40 go in "THE BANK"

Discussion in 'Lawn Mowing' started by happy, Jun 3, 2008.

  1. happy

    happy LawnSite Member
    Posts: 193

    Had an emplyee last year that said any hours over 40 just put those hours in an account and in the winter if we work 20 hours in a week, he will still get paid for 40 because I will deduct 20 bank hours. This year I forgot to mention this is how we do it here, to 2 new hires. I told them and they were fine with it. Couple days later one of my employees(my main mower guy) said that his wife said that he is working too hard and long hours not to be compensated now and that she does not want him doing the bank hours. We have been putting in 51, 45, 59 hours per week in in the last 3 weeks. So when he worked 51 hours last week, 11 hours went into the bank to be used in winter time. What could I tell him to tell his wife to convince her. He said he thought it was a good idea, but his wife said she did not like it. He fully understands that if we do the bank hours and he works 20 hours he will still gert 40 hour pay because I will pull 20 hours from the banked hours. This is a great idea, because it helps me retain employees, and it saves from time and a half.
  2. C&K

    C&K LawnSite Senior Member
    from East TN
    Posts: 295

    It is Federal Law to pay time and one half for any labor worked over 40 hrs per working week.
  3. ed2150

    ed2150 LawnSite Member
    Posts: 174

    It's not a bad idea, but C&K is right; time over 40 per week must be overtime rate.....if your employee works 50 hours you'd have to "bank" 15 hours for him.

    If they were to complain to the labor board in you area you'd be fined and would have to go back and pay it all to them anyway.......
  4. newz7151

    newz7151 LawnSite Silver Member
    from Tejas
    Posts: 2,419

    If this "banking" thing is the way you are wanting to pay your employees, you'll have to set them up and show them as salaried workers I believe.

    Otherwise, time and a half for over 40. The wife of that guy must not be planning on her husband still working for you in the winter months.
  5. ALC-GregH

    ALC-GregH LawnSite Fanatic
    from PA
    Posts: 7,053

    you'll still have a paper trail if you set them up as salary. Best pay them the OT with the banking deal your trying to do with them or they could turn on you real fast and cost you WAY more money in the end. It kinda sounds like you trying to get over on them with no OT. Now if your paying them the OT and banking it, thats different but from the last few words of your post, "and it saves from time and a half" it sounds like your getting over on them. Best pay them especially with the guys wife already complaining about it. I'm sure she knows enough to cause trouble.
  6. k911lowe

    k911lowe LawnSite Senior Member
    Posts: 526

    ditto for me.pay the guys the time and a half and quit being a cheap bastard and denying your employees their rightful wage.its people like you that give us a bad name.
  7. mverick

    mverick LawnSite Senior Member
    Posts: 307

    Federal law on the 1.5x for over 40.

    Don't want to pay 1.5 don't work them over 40.

    This could get very messy for you real quick. Or down the road. 2 years later guy turns you in. You have to pay him and get all your books looked over to pay everyone else. And a fine. And, if you've hidden jobs they'll see it. Don't let yourself get into that mess.
  8. Lawn-Sharks

    Lawn-Sharks LawnSite Senior Member
    Posts: 912

    Yeah! how does that work? anything over 40hrs you put into a bank and then when you get slow the hours then got to make up the differenceon a 40 hr week? what about the overtime, if your guys were to save up 20hrs then you would owe them 30hrs not 20. plus i dont think this is legal.
  9. Dean of Green

    Dean of Green LawnSite Senior Member
    Posts: 254

    :nono::nono::nono::nono::nono: read your last sentence. This is what the wife sees in you. Enough said. Everyone else has said it all better than I could.
  10. Josh.S

    Josh.S LawnSite Bronze Member
    Posts: 1,085

    That law for 1.5x salary for any hours over 40 doesn't apply to everybody.

    Like minimum wage, you have to have X gross sales per year and have X amount of employees to be applicable to apply by those laws. Check and see, but you might be exempt.

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