Set wage per days worked?
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Set wage per days worked?
I work at a small business where I am paid $150 a day before taxes. I do work
Monday – Friday and not always 40 hours. I asked my boss if I am salary and he said no, it is a set wage per days worked. I was wondering what this means
towards the new federal laws concerning pay and if this is even a thing since I
cannot find anything about it online?
Asked on September 3, 2016 under Employment Labor Law, Ohio
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
It is legal, subject to the following caveats:
1) It must always work out to at least minimum wage, if you were to divide the $150 by the hours worked per day--which should not be a problem.
2) $150 per day works out to (5 day week; 52 weeks per year) the equivalent at maximum of $750/week x 52, or $39,000 per year. That means that you are below the new threshold to be exempt from overtime, were the per-day wage to be considered equivalent to a salary (a good argument can be made that it is, since an employer has the right to not pay a salaried employee for days he/she does not work at all). That in turn means that IF you were work more than 40 hours in a week, you'd have to earn an overtime premium for hours worked past 40. The most common way to calculate it would be to divide the $150/day by your average daily number of hours (say, 8), to get the hourly equivalent, which would be (in this example) $18.75 per hour. For any hours worked past 40 in a week, you would then earn an extra $9.375 for each post-40 hour.
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