Holiday/vacation pay for flat rate employees

[Reggie]

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?

[phynny]

Take the previous 4 week average and pay them that.

[Pjauto]

Agreed

[Reggie]

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]

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.

[Reggie]

Thank you Pjauto. That is very helpful. I am so glad I found this site!

[ATLAuto]

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.

[DUFRESNES]

Premium Member Content 

This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.

[xrac]

Premium Member Content 

This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.

[Guest Valliam13]

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.

[Don Walcheski]

We use their 13 week average weekly hours to compute the holiday pay.