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Payment method for short term employees

  • Thread starter Thread starter pj mom
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pj mom

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What is the name of your state? CA

A company's payroll system is established based on categorizing employees as full time or part time. For ALL full time employees, the payroll method is to annualize your salary and then divide by 24 (bi-monthly pay periods). Any time missed the then subtracted from the original base pay. However, they hire summer employees that are informed they can work a maximum of 90 days at an hourly wage. Because these summer employees work full time they are paid based on the same method as all other full time employees. However, the number of days in a pay period varies; therefore this annualized method only averages out over a year. For summer employees the annualized method pays less than if paid period hour. Is it legal to pay a short time employee based on an annualized method when those employees are hired for a limited time period for an hourly wage? When hired the employees are given a letter from the employer that states the hourly wage to be paid. The method of payment is not discussed.
 


Beth3

Senior Member
Is it legal to pay a short time employee based on an annualized method when those employees are hired for a limited time period for an hourly wage? As long as these employees are paid at least minimum wage, yes.
 

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