Hourly Pay vs Salary
Hourly Pay vs Salary
(OP)
I am currently paid hourly,since I do not have my PE yet. It works well for me when I need to take unexpected time off (kids). I always take unpaid leave. The motivation is to get the PE and get paid more and continue to balance my family obligations. I am a working mother.
Are there engineers with PE's out there that get paid by the hour?





RE: Hourly Pay vs Salary
I used to have a salary, worked the same number of hours I do now, I just did not get paid for them.
I think you will still have to take unpaid leave for anything which exceeds your contracted amount of paid leave. I might be wrong, but I don't think your boss is going to pay you your full salary unless you put in the full 40 hours per week. Make sure you clarify that during your renegotiation prior to accepting a salary.
Also, make sure you know what the bonus/profit sharing structure is. That money should at least offset the OT which you will no longer be eligible for.
A good compromise might be to accept straight-time OT, versus 1.5 time OT.
Remember: The Chinese ideogram for “crisis” is comprised of the characters for “danger” and “opportunity.”
-Steve
RE: Hourly Pay vs Salary
In my business, the vast majority of companies have all "professionals" on salary. Per federal labor law, we're categorized as "excempt" because we are excempt from many labor laws, such as those governing overtime.
When I retired from the Navy over 10 years ago, the firm I went to work for was an exception, they paid hour by hour, straight time for over 40/week. However, they were not as good at the "business side of the business", and we were acquired by another company 5 years ago. Gradually, our processes and procedures have migrated to the new company's, and now all degree'd personnel are salaried.
//mjs
RE: Hourly Pay vs Salary
The downside is that when doing “non-billable” work like marketing, I only get paid up to 40 hours per my salary, no OT.
RE: Hourly Pay vs Salary
I'm told that the Feds don't get this kind of comp time. I don't know what I'd do without it.
Hg
Eng-Tips guidelines: FAQ731-376
RE: Hourly Pay vs Salary
RE: Hourly Pay vs Salary
Hg
Eng-Tips guidelines: FAQ731-376
RE: Hourly Pay vs Salary
Two things matter:
(1) your company policy (which in my case has changed), and
(2) The contract you're working under.
While some contracts may require full pay for all hours worked, but this seems unlikely as it would merely increase the cost to the client. On the other hand, a company's proposal for a contract may stipulate that the company typically performs 45 hours of work for salary - which works to ensure employees MUST work additional hours for their salary. I also know some companies will state up-front in the hiring process that employees are expected to work additional hours for the "high salaries" they are offered.
"Comp Time" is a totally different matter. The gov't agency I worked at just prior to retiring from the military clocked engineer's hours; who would typically work 16 hour days at select times, such as sea trials. This additional time was recorded as "comp time". The employee DID NOT get paid additional for it - at first. The employee could take this comp time later in lieu of using vacation time; the agency also had the option to "buy back" comp time at the end of the fiscal year, IF the agency had the funds to do this. In this case, then, the employee would essentially "get paid" for his/her OT.
RE: Hourly Pay vs Salary
For exempt employees, OT pay or comp time or nothing is as per the company policy.
RE: Hourly Pay vs Salary
RE: Hourly Pay vs Salary
Considering the windfall profit any company sees when it's employees working overtime I think this is the fair way to do buisness.
Of course some companies offer increased salaries to compensate their employees for the fact that OT is not paid. Just make sure you know when negotiating salary...
RE: Hourly Pay vs Salary
I guess all contracts/businesses are different, but if I do not receive OT pay, but were to log in say 50 hours one week (both tcommon in my current position); then yes, the company will bill the customer for 50 hours, BUT the effective hourly rate will be reduced. I believe this is required by federal contract and acquisition law, but I'm not positive (and even if it were the law for federal contracts, it may not apply to contracts between private companies).
Also, this is what some companies refer to as "uncompensated OT", and some that require uncompensated OT, because one result is the company's "average hourly rate" is reduced, which helps the company when bidding on future contracts.
RE: Hourly Pay vs Salary
My one person Company is great for me (no headaches) but I do need some headaches to compete at a higher level.
One idea is to compensate the part time employees for all hourly time spent. Then allow them to share in the profit.
This is based on their proper ethics of understanding the bottom line and at the same time be part of the profit my company would make. It is fair to them, fair to me and allows assembling a highly motivated group to compete.
They would remain part time employees until they decide to take the same monetary risk that I do.
Does that sound like a plan or fantasy?
RE: Hourly Pay vs Salary
RE: Hourly Pay vs Salary
In OK, you are concidered hourly by law if you don't have any say in hiring/firing of employees, and have to fill in time sheets even if your company pays you as exempt. Companies that don't follow this set themselves up to be sued by their ex-exemployees for 3 times their back overtime, and the management chain can also be sued for the same ammount individually. A good record keeper could hit the lottery, but may not find anyone that will hire them again.
RE: Hourly Pay vs Salary
Hg
Eng-Tips guidelines: FAQ731-376
RE: Hourly Pay vs Salary
RE: Hourly Pay vs Salary
In the DC area, most "professional", including ALL engineers I know are salary, no OT, no comp time (this may be practice rather than regulation).
At my last Navy command, civilian engineers clocked time hourly, but rec'd only comp-time for hours over 40.
I suspect that certain practics simply become "accepted". I can imagine a gov't eng in DC complaining about not getting OT.......most likely he/she would be sat down and a few things discussed.....
RE: Hourly Pay vs Salary
Not for nothing, but not all have an interest in OT.