Expert: Shirley McAllister, CPP, PHR - 11/25/2009

Question
QUESTION: Is it lawful to pay hourly workers twice a month.  We were salary getting paid on the 15th and 30th and then we went to hourly, after a buyout, but we still get paid on the 15th and 30th.  Our yearly salary did not change, but our monthly pay fluctuates and comes up short alot, but at the end of the year it does equal are salary yearly income.  My main concern is that it does not seem fair I have you work a full year to make my hourly salary.

ANSWER: It is legal to pay in this manner. As long as you are paid the correct amount.

If you are hourly you should now be paid the hours you work. You can still be paid on the 15th and 30th but you should be paid for the hours you work during the payperiod. You also should be paid overtime for any hours worked over 40 in a week.

I used to have hourly workers and paid twice a month. I hated it because I had to keep track of the hours when the payperiod ended in the middle of a week until the next time for overtime purposes...it was a nightmare for payroll so I finally got it changed to bi weekly and now I pay every other week. I cut payroll off on Friday and pay on the next Friday. So I am paying only twice a month but I am paying 26 times a year instead of 24.

Shirley

---------- FOLLOW-UP ----------

QUESTION: the rate times the hour is correct but compated to being paid every two weeks and being salary my pay comes up short for the first couple of months and then further into the year it will break even.  But if I quit at the end of February my pay for four months, our yearly cycle starts in October, my pay is 1000.00 short compared to me being paid every two weeks or salary.  So if i quit am in entitled to my correct pay, if i leave.  That is what i meant when I said I dont think it if fair I have to work a full year just to get my true hourly pay

Answer
There is no more salary if you are hourly. There is no more annual pay.

You should be paid $----.--- dollars for each hour you work. You should be paid each payperiod for all the hours worked within that pay period. That is what hourly means.

You cannot compare it to salaried as it is not the same.

If you are paid 10.00 an hour and work 30 hours in the pay period you are paid 300.00. If you work 40 hours 400.00. If you work 37 hours than you would be paid 370.00.

There is nothing to match it against. You are simply paid for every hour you work in the payperiod.

This is legal to do and it is legal to pay weekly, biweekly, semi monthly and in some states monthly.

Shirley