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Sep12

Compensation

Our employees are sales reps and they are paid a day rate. We had a new employee work on the sales run for only three hours and then walked off the job and never returned. Do we have to pay him for those three hours if he did not work a full day?

Most likely you need to pay this employee for the entire day.

If your sales reps are not paid overtime when they work more than 40 hours in the week, then you are treating them as exempt employees. An exempt employee must be paid for the full day if they work at all, regardless of how many or how few hours he or she works that day.

If your sales reps are paid overtime when they work more than 40 hours per week, then they are non-exempt employees and you can pay this worker for just the 3 hours.

It is tempting to bend the law by prorating this exempt employees pay, but ultimately this was a small price to pay to learn that he is totally unsuited for this job — and to stay on the right side of the law.

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This entry was posted on Saturday, September 12th, 2009 at 4:50 pm and is filed under
Compensation.
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