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Holiday/vacation pay for flat rate employees

Reggie

By Reggie
in Human Resources, Employees

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Reggie Rookie

Reggie

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We recently switched from hourly to flat rate for our techs. I am having a hard time figuring out what to pay an employee if they have taken vacation times. What rate do I pay them at?

Reggie Rookie

Reggie

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Just so I'm clear, Say Tim's gross is 5000.00 for 4 weeks. I then divide the $5000.00 by 4(weeks) and then by 40(hours) to get their holiday pay rate of $31.25/hour?

Pjauto Enthusiast

Pjauto

Posted
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Yes. The goal and gift of vacation or holiday pay is that the employee does not need to worry about their finances while they are gone. I feel if you pay less than what they are used to they will worry about money or have to save enough for their vacation plus time missed at work. Many flat rate shops do not pat this way but instead just give a flat 20 or 30 hours which to me is crummy. That being said you do not "owe" anyone anything as far as what you pay for that time off but the way I see it is if you are going to do it, do it right.

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  • 3 weeks later...
ATLAuto Rising Star

ATLAuto

Posted
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That being said you do not "owe" anyone anything as far as what you pay for that time off but the way I see it is if you are going to do it, do it right.

Well said.

  • 2 years later...
Guest Valliam13

Guest Valliam13

Posted
Posted

Not to bring up old posts but.... my husband is a tech. We took vacation earlier this year and it was less than his flat rate per hour pay. They said it had something to do with averages from last year but 1. every week of last year he brought in over 40 hours a week and 2. He was being paid less last year (he got a raise earlier this year of $0.50). I guess I still don't understand how they can pay under his flat hour rate for vacation. Nor can I figure out how they averaged it out.

  • 9 months later...

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