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> -----Eric Dunn wrote:-----
> Perhaps the employee might end up with less. If so, prove it.
> Until shown,
> it's paranoia.
>
> Understand change and it's full impact before running around
> shouting the
> sky is falling.
Here's some hard math with some fake numbers. In this scenario, the employee gets hurt by the switch to being hourly.
52 weeks/year x 40 hours = 2080 work hours/year
Assume a salaried position of $52,000 per year (works out to round numbers)
$52,000 / 2080 hours = $25/hour
So theoretically, $52,000 salary is the same as $25/hour hourly.
Last year, "Bob" worked as a salaried employee. During the summer, he had to take off 2 weeks to recover from a shoulder injury incurred while playing on a beer league softball team. Bob also had to take time off for doctor's appointments (10 hours total) in the weeks following his recuperation. As a salaried employee, he didn't get docked any pay for the time off sick. By the end of the year, Bob had earned $52,000.
This year, Bob converted over to hourly pay at $25. All other benefits remained the same, but he only gets paid for the actual hours he works (no overtime allowed, no shift differentials). He is still allowed up to 6 days of sick time per year. This summer, Bob has to take off 2 weeks to recover from an injury on his other shoulder (some people never learn). He also took another 10 hours off for various doctor appointments.
SICK TIME
2 weeks being off while sick = 80 hours
6 days of sick time = 48 hours
80 - 48 = 32 hours of unpaid time during the two weeks off
32 hours x $25/hour = $800
10 hours for doctor appointments x $25 = $250
Assuming that all other things are equal, Bob will earn $1050 less this year than the year before.
That's why some people don't like the risk of being hourly. You literally get paid only for the time you put in, and there may be some circumstances where you can't work for a stretch. This may not happen to everyone who went hourly, but it's possible.
Donna
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