Need to find Employees In a world where they don't exist ?

Toro44

LawnSite Senior Member
I didn’t realize the self induced paycheck to paycheck mantra was a thing until i started hiring people. It’s crazy to me how many people out there will not work if they have a dollar in their pocket and will be willing to work once it’s out. Even though the free money has largely stopped it will be a while before people are out of cash and need to go make a buck again. Crazy
 

kemco

LawnSite Fanatic
Location
Memphis TN
Garbage guys in my city get right around $50k, don't have to work when it's over 95 or under 32 degrees respectively, but still get full wages. And are union with full pension. They are "done" and get a full days hours even if they pull back in at noon. Had TV stations a while back following them and recording them only picking trash up at about every third or 5th house and pulling back into the dispatch at our around noon. Our tax dollars at work! No one here would take a $30k job that requires 30 to 40+ hours a week over that. But glad to hear you can where you are.

Our trash has been missed 3 times out of the last 5 pick up weeks... as in our entire street. We've got trash bags of trash bags building up. And if it isnt in the can (which is already overflowing) they won't pick it up. Call and complain. Don't waste your time trying. They will get to it when they get to it. Think our solid waste bill gets a discount?
 
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rdavidson13

rdavidson13

LawnSite Member
I didn’t realize the self induced paycheck to paycheck mantra was a thing until i started hiring people. It’s crazy to me how many people out there will not work if they have a dollar in their pocket and will be willing to work once it’s out. Even though the free money has largely stopped it will be a while before people are out of cash and need to go make a buck again. Crazy
Insanity isn't it ?
 

JawT

LawnSite Member
How can you afford to offer 2 paid months off? I mean, as soon as a state mandates paid maternity leave or two weeks paid vacation, every business owner calls their congressman and screams it’ll be the end of the industry.

And... what do you do if they quit before starting again in the spring?
 

TPendagast

LawnSite Fanatic
Oh man you are speaking to the choir. Seems my employees want to work less and less these days and get by on less and less income. A 35 hour a week is a push.
The only exception to that is family guys with a wife and kids. They have a little extra incentive..
Someone told me there’s a country that just went to four 8 hour days as standard

I was half listening
Can’t recall which country they said it was
 
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rdavidson13

rdavidson13

LawnSite Member
How can you afford to offer 2 paid months off? I mean, as soon as a state mandates paid maternity leave or two weeks paid vacation, every business owner calls their congressman and screams it’ll be the end of the industry.

And... what do you do if they quit before starting again in the spring?
$35,000 salary that is divided equally between 26 paydays for the year. If someone has been with me the whole year they get full pay in Dec & Jan while off, if they have not they get a pro-rated portion for that time period. We also offer a bonus plan that pays out quarterly in addition to the salary based on timeliness, attendance, customer call backs, customer surveys etc. Each technician runs about 350-400 accounts that gross enough to support up to $50k a year and still keep us within our labor % goals. The bonus plan pays out a quarter behind, 1st quarter pays at the start of 3rd quarter, 2nd quarter pays at the start of 4th quarter so there is a lag period to allow us to #1 do the math, #2 it works great for employee retention, if you know you have a $2,000 bonus coming and your having a bad day, quitting costs you more than a few days pay and would get someone through a tough spot if they are burnt out etc.....However, that has not benefited us yet, we try hard to create a great quality of life within the job to prevent that. IF they quit before starting again in Spring, its no sweat, the monies paid to them were earned during the previous season. Work schedule is M-F 0745-1700 and every other Saturday for 10 months out of the year, this program doesn't cost me much more than the traditional $18-$20 per hour when you do the yearly hours worked and break it down, the 2 month paid time off carrot tho is super appealing to so many people, being off during the holiday and bad weather season WITH pay :)

Math on this on my end is 43 work weeks per year at 49.5 hours average per week (2128 hours yearly) at the BASE salary of $35,000 that is $16.45 per hour for me and with bonuses in place to hit the $50,000 yearly that is $23.00 per hour for them on my end. Either is an affordable wage for us to pay them, and if someone is only making $35k per year, there is something wrong with their work habits etc. Some think "salary" means paid regardless of hours worked whether it be less or more, like when a restaurant manger works 100 hour weeks for their $600 salary that was based on 50 hours....I do not do that, in our agreement hours worked in excess of this are PAID to them, but that is very very rare to occur, with that, hours worked under that are deducted accordingly, so day requested off, unless made up are not paid in the "salary". Salary requires the work hours to be put in.

I only have 4 guys and 5 trucks right now, pretty small in contrast to many of you, and this works for me now. Not sure if I plan on scaling to being any larger either.......where we are is controllable and very family like environment....going to work hard to keep it that way for 100 reasons :)
 
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rdavidson13

rdavidson13

LawnSite Member
If you haven't already, you may want to discuss your pay situation with a lawyer. It sounds like you may possibly be skirting some labor laws with your salary situation.
Unclear how, we have an accountant and payroll group that we run through. We well exceed minimum wage, MANY salaried jobs all over the country are based on 50 hour work weeks, and a BONUS plan is truly a BONUS, not promised and can be revoked. I am unclear on what part of our pay plan you feel would be skirting labor laws ? There is a written agreement that explains everything in detail upon hiring. I would not be fearful to go into a labor compliance audit with the state with the plan we have in place. I've been self employed the majority of my life and had a chain of restaurants with 150 employees and we did similar with management for a decade with zero issues ever. Is there something in particular that you feel I should look at Gus ? I'm open minded brother and willing to learn even at my old age :)
 

kemco

LawnSite Fanatic
Location
Memphis TN
$35,568 is the minimum salary that must be "paid" for an employee to be exempt from overtime (time and a half) starting at any hours in excess of 40 hours. The whole exempt v non-exempt employee is one of the most confusing word salads in the code that I have read. I would have no clue because there are so many if's and and's.

I've also learned over the years that even the best CPAs don't know a whole lot when it comes to the legal intricacies. Learned that the hard way once and ended up on the wrong side of the IRS but I got it all straight. Cost me close to $10k in just interest and penalties. Not fun. I should have consulted a tax attorney (different problem though).
 

Gus McGee

LawnSite Senior Member
You have to be very careful about proper overtime pay and deductions of salary when it comes to non-exempt salaried workers. If they are working over 40 they need to receive overtime pay. If your agreement is based on fluctuating hours, you can't deduct pay.

Paying non-exempt employees a salary can be a bit of a minefield.

Though I am no expert in this topic. I may very well be wrong. You should ensure that your pay situation is kosher.
 

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