Overtime Question
cappy
217 Posts
Ok. . . I need help again. I am trying to find a way to reduce my OT budget. I am HR for a municipal fire department. Our Fire Marshal's Office is under staffed therefore we use line personnel to perform building inspections on their off duty days. We pay them their OT rate sometimes to the tune of $55.00 per hour. We don't want to stiff anyone but the OT money runs out far too quickly.
So here is my question. I have read FLSA opinion letters describing the difference in volunteers performing duties for the same department and as long as the duty was substantially different from their regular duty then there is no FLSA pay issue. (Yes overly simplified) Based on that I started looking for regulations that would allow me to set a standard pay rate, say $30.00 per hour, as a call back pay to do inspections. Building inspection is substantially different work requiring specialized training and certification that is not required of line personnel. Nor do line personnel perform inspections in any part of their regular or required duties.
Is substantially different work on off duty days a requirement to be counted as work hours toward OT under FLSA? Is it allowable to set a flat pay for this work even though it is work for the same department?
Hope I was clear enough with me dilemma.
Comments
First problem...these would never be considered volunteers, especially if you are paying anything to do the job.
All hours worked for one employer, regardless of job duties, have to be counted into your OT calculation. http://www.dol.gov/dol/allcfr/ESA/Title_29/Part_778/29CFR778.103.htm "the employer must total all the hours worked by the employee for him in that workweek (even though two or more unrelated job assignments may have been performed"
However, what you could do is a modified rate of pay for the hours they are doing inspections. Then your OT calculations would be a prorated regular rate of pay which would bring your OT premium down.
For simplification....40 hours at $10 regular rate and 5 hours at $8 regular rate = $440 regular pay....which would lead to a prorated reg rate = 440/45= $9.77 per hour...so the OT premium would be 5* 1/2 * 9.77= $24.43 and total pay would be 440+24.43= 464.43
Obviously the change in OT premium will depend on the weight of hours and the amount of pay difference.
[quote user="cappy"]Well that is pretty plain. I appreciate the response. [Y][/quote]
She's good at that. :-)
Wow! That's the 2nd compliment I've gotten today. Must be a good idea to go on vacation every once in a while!
rr