11. HSP Compensation
11.1 General Overview Because wage and hour law differs from jurisdiction to jurisdiction, and because the legal interpretations of these laws and regulations remain in a state of flux, it is imperative that you have competent local legal counsel review your compensation system. The statements which follow are, therefore to be used for illustration only. MOLLY MAID Home Service Professionals are paid based upon a percentage of the price of each house cleaned. This basis of payment is referred to as a task basis. Task basis employees are non-exempt from the minimum wage requirements. Thus, the HSP’s hourly rate must meet current minimum wage requirements. The hourly rate is equal to the amount of the HSP’s wages for the week divided by the number of hours worked in that week. The number hours worked includes not only the amount of time cleaning houses, but also time spent driving between houses, staff meetings, time at the office collecting supplies and other required job functions. Please be aware that you must include time the HSPs may spend doing re-cleans at customer homes. This is considered working time and must be included when calculating hours worked. The number of hours worked does not include lunch breaks or commuting to and from work. In addition, each franchisee must also make certain that it is complying with the applicable federal and state overtime requirements. The federal requirements are that an employee be paid time and a half for all hours worked over 40 hours per week. For example, if an HSP works 50 hours in a week and earns $400 in commissions for cleaning the houses, the HSP’s hourly rate is $8 per hour. However, for the 10 hours of overtime, the HSP is entitled to time and a half which would be another $40 ($8/hour x 1.5 x 10 hours minus $80 paid at regular rate = $40). In another week for example, if the HSP works 50 hours but receives $450 in commissions for cleaning the houses, the HSP’s hourly rate is $9 per hour. However, for the 10 hours of overtime, the HSP is entitled to time and a half which would be another $45 ($9/hour x 1.5 x 10 hours minus $90 paid at the regular rate = $45). In consideration of employees and to control labor costs, we do not recommend that you authorize or allow overtime work activities.
Lastly, employers are required to keep records for each non-exempt worker.
The following is a listing of the basic records an employer must maintain: • Employee’s full name and social security number;
• Address, including zip code; • Birth date, if younger than 19; • Sex and occupation; • Time and day of week when employee’s work week begins; • Hours worked each day; • Total hours worked each work week; • Basis on which employee’s wages are paid (i.e., task basis); • Total daily or weekly straight time earnings;
MOLLY MAID Personnel Manual Copyright 2015, Molly Maid, Inc.
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