Separate names with a comma.
Missed the live Ask the Expert event?
Catch up on the conversation with Ken Hutcheson, President of U.S. Lawns in the Franchising forum plus sign up to receive a FREE eBook on how to grow your landscape business.
Discussion in 'Business Operations' started by ryanc, Aug 11, 2013.
Do you pay per hour? Pay by the job? If you pay by the job what percent do they make? Thanks
nobody is going to answer that question honestly. The only LEGAL way to pay employees is at least minimum wage and overtime. There really are NO exception in this business. Pay them anyway you want to but if someone gets pissed off and goes to the labor dept you are screwed.
You can pay an employee by the job.
Say you want pay $12 a lawn. Now if he gets each lawn done in a half hour and there is a half hour travel time. The employee is on the clock for one hour. You paid him $12 an hour.
The employee is on the clock from when he leaves the shop till he gets back. Now in that 8 hours he did 8 lawns you have to pay him $96 for the day. Say minimum wage is 8 an hour if he was paid minimum his salary for the day would be $64.
You are legal because you exceeded minimum wage.
Now if the employee got 5 lawns done in an 8 hour day then he earned $60. You would have to pay $64 for the day because you can not let his salary fall below minimum wage.
So you can legally hire someone offering them any amount per lawn as long as you guarantee them minimum wage.
Again, the answer to your question is you have to pay minim wage + overtime. Don't think it matters how you phrase it.
We have 2 guys that work for us. The first is a high school kid that works for $9/hr. the other has a service tech license and does some of our fertilizing and weed control. For that we pay him $12/hr. when he mows with me I pay him $10/hr. the hi school boy works approx. 20 hrs/week. The olher works between 30 to 35 hours/week
Over time only if 40 hours a week is worked.
So if the math works out the employee can still be paid $12 a lawn as long as his compensation exceeds minimum wage and OT wage of 1.5 x min. wage.
I pay my employees absolutely nothing, nada, zilch... Then again I don't have employees.
I'm not sure why no one would answer that question honestly. I pay by the hour. Paying by percentage doesn't make sense. If you underbid a job your employee doesn't deserve to get screwed, and if you are bidding well you should keep that because you are the one assuming all the risk. Employees get paid by the hour, if you wanted to do some kind of bonus or commission for work done well and fast I could see that as an extra motivator. I have 4 employees. The two newer guys get $11.50 per hour, the guy who is quicker and has a few years experience gets $13, and my supervisor get $16 per hour. They all get time and a half for hours over 40 per week. I pay more than the average company. That is because I am a smaller company and I cant have them quit for the next company paying a 50 cents an hour more. I lose a guy and yards aren't getting done, so I pay them well and treat them well. I also pay them through lunch. They get here at 7 and are paid until we get back. I think they deserve that since lunch is only 30 minutes and they really don't get any other breaks. We go hard all day. I also pay employer taxes and take taxes out.
I'm seriously considering doing a "bonus" system when they beat production budget. Say a property is budgeted to take 1 hr - if they get it done in 55 min, then 5 min goes into their bonus bank etc. Not sure exactly, just trying to find small ways to motivate them to hussle a bit more on some days. I'll gonna work out some kinks and give it a shot next year - see how everyone reacts.
I pay $15/hr plus bonus on larger landscape work. No overtime because we don't work overtime.