Employee Pay: Per Yard or Hourly?

Discussion in 'Lawn Mowing' started by CRQualityMowing, Feb 27, 2014.

  1. whiffyspark

    whiffyspark LawnSite Fanatic
    Posts: 6,090

    I heard that's what got them in trouble and they aren't paying that anymore. That and expecting X many lawns done per day. which they basically paid per app. Let's not talk about Chinese over time :laugh:

    They've moved to just straight hourly
     
  2. Kelly's Landscaping

    Kelly's Landscaping LawnSite Platinum Member
    Posts: 4,262

    Your required to pay minimum wage this is true. But that part that could snag you on this. Is it over the course of the week or by the hour? That may be open to interpretation. Lets say 4 days your guy hit his numbers and made 20 an hour off his lawn numbers. Then day 5 it rained and he had a few break downs and had to return to the shop and end up doing 2 lawns but was there for 5 hours. We will keep this very simple and assume its 40 hours. So the first 35 hours he made 700 dollars but the last 5 hours he made 20 bucks. For a grand total of 720 now divide that by 40 and he's at 18 an hour. But what if he complains about the low pay on the 5 hour bad day there he only made 4 dollars an hour. Despite paying him well and him making more than twice minimum wage you could still be hit for the hours he missed it.
     
  3. Richard Martin

    Richard Martin LawnSite Fanatic
    Posts: 14,700

    The system is based on a 40 hour work week, so as long as their average hourly pay in a 40 hour work week doesn't fall below minimum then you're good.

    http://www.dol.gov/whd/regs/compliance/whdfs54.htm

    Don't take this to mean that the overtime law can be abused to this end. If their regular pay is $10 an hour, you can't lower it to avoid paying overtime after 40. If their regular pay is $10 an hour then over time must be $15 an hour.

    I can envision some cheating employer paying them $10 an hour up until 40 hours, and then lowering it to $7.25 an hour over 40 hours in order to lower the overtime pay to $10.87 an hour.
     
  4. weaver

    weaver LawnSite Bronze Member
    Posts: 1,276

    Say if someone hired a helper, basically trim & blow.. what all would one have to do to be legal? Add them on insurance? Write them a check each wk? 1099 at the end of year?
    Posted via Mobile Device
     
  5. whiffyspark

    whiffyspark LawnSite Fanatic
    Posts: 6,090

    Trugreen. It's called chinese over time lol:laugh:

    Weaver - 1099 isn't correct form I know that. You got insurance, workers comp, payroll, taxes, etc.
     
  6. weaver

    weaver LawnSite Bronze Member
    Posts: 1,276

    Wow.. really. .. just for a basic helper. . Trim & blower would have to do all that..
    Posted via Mobile Device
     
  7. Richard Martin

    Richard Martin LawnSite Fanatic
    Posts: 14,700

    You can only 1099 sub contractors. A lot of employers give employees a 1099 until they're audited by the IRS. Then they start withholding taxes like they're supposed to. If an employer is found to be paying employees with a 1099 instead of withholding taxes, the penalties and back taxes can be rather sizable.

    http://www.irs.gov/Businesses/Small...ependent-Contractor-Self-Employed-or-Employee

    For Federal information on hiring a new employee you should start here:

    http://www.sba.gov/content/hire-your-first-employee

    You should check with your individual state's Department of Labor for instructions and worker's comp regulations. It varies from state to state.
     
  8. whiffyspark

    whiffyspark LawnSite Fanatic
    Posts: 6,090

    Legally yeah
    Posted via Mobile Device
     
  9. Kelly's Landscaping

    Kelly's Landscaping LawnSite Platinum Member
    Posts: 4,262

    Thanks Richard I was merely thinking out loud all possibilities and how it may be exploited against the employer. I for one would never pay someone based on piece work in this trade. Interestingly I would of loved it back when I stocked shelves 3rd shift 25 years ago.
     
  10. TPendagast

    TPendagast LawnSite Fanatic
    Male
    Posts: 7,521

    I always gave my guys more lawns to cut.

    I always had call ins,
    my own half route,
    another crew was behind..
    If A guy was cooking, I could always fill him in with more.

    Ive seen guys make over 1 grand a week on the flat rate mowing thing.

    Ive seen WAY more guys quit because people insisted on trying it.
     

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