The last employee piece position I had was for a company that was pretty standup about things. If I recall, their process was to take your weekly piece earnings and divide it by the number of hours worked to come up with an effective hourly rate. Then they paid half-time on top of your check for every hour over 40. The math works like this:
$900 piece in 50 hours equalled an hourly average of $18/hr.
10 hours times $9/hr equalled $90 added to your check. Total pay on check was $990.
Needless to say, they had a strict policy of limiting overtime. So, if you couldn't regularly get out of the field in a decent amount of time, your days on went down. While they never encouraged anyone to falsify time reports, many of us were doing that in order to keep our days on maxed out. I don't have a problem working straight time past 40, as long as it is at my option. I documented my hours based on time spent on site at customers' homes. If I was enroute, I was on break as far as I was concerned.
I think different states have different ways of calculating overtime for piece rates. I have heard of another method where piece is divided by 40 hours even if it was earned after the 40. It goes like this:
$900 piece in 50 hours. $900 divided by 40 equals $22.5 hourly. Then $11.25 is added to every hour worked past 40. So, the check would then be $1,012.25
As you can see, that method is more generous and will likely comply with most states. If you have to consider this in your payroll, I would check with an independent payroll consultant or a lawyer who specializes in labor law first.
Re: Overtime pertaining to Employees doing Piece R
Member #: 40846
Registered: 9/19/2005
Posted:
1493
Name:
Duane Vick
Name:
Duane Vick
Company:
Self-Employed
Occupation:
Installer
Location:
Phoenix AZ
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