Compensation FAQs
Below are some of the most frequently asked questions clients have about “Compensation” issues. If you have any other questions, or would like to schedule an appointment, we would love to hear from you.
Would you change an exempt position for a part-time employee to a non-exempt position because you are paying them hourly?
If you want to pay someone on an hourly basis, the position becomes non-exempt. With the exception of certain positions, paying on a salary basis is one of the three criteria for classifying a position as exempt. Your company can maintain the exempt status by continuing to pay the employee on a salary basis that has been prorated to account for the reduction in hours.
How is the exemption for positions in the computer field different than for other positions?
The computer employee professional exemption applies to computer systems analysts, computer programmers, software engineers, and other similarly skilled workers in the computer field whose primary duties consist of specific duties. Computer employees who meet the specific criteria in terms of skills and qualifications must be compensated on a salary basis at a rate of no less than $455 weekly or on an hourly rate no less than $27.63 hourly.
Do we have to pay our employees extra for working nights, weekends, or holidays?
Generally speaking, your company will not need to pay non-exempt employees overtime unless they have worked in excess of 40 hours during the workweek. Some states do require that employers pay at least time and a half for employees who work on certain holidays.
How do we determine the hourly rate for a salaried, non-exempt employee?
For salaried non-exempt employees, you determine their hourly rate based on their total compensation. The hourly rate is determined by dividing the salary by the number of hours the salary is intended to compensate.
For exempt employees, can we deduct for partial-day absences?
Making deductions for absences of less than a day endangers the exempt status. It is safer to require exempt employees to use paid leave for partial day absences. The Department of Labor has considered this action to be permissible since you are not reducing the employee’s compensation.
What is the difference between an employee and an independent contractor?
An independent contractor is typically someone who works for more than one company. Employers aren’t required to withhold income or Social Security taxes or pay unemployment or other state or local taxes on independent contractors. Independent contractors typically set their own hours, make the rules for where they work, work separately from the employer’s premises, send invoices for their services, and have a written independent contractor agreement with their employer.
If we have mandatory training held on Saturday, do we have to pay our employees?
It is illegal for employers to require employees to attend training without compensation, regardless of the day, unless all employees are exempt. If Saturday is not a regular workday, every non-exempt employee who attends the training must be paid at a rate of 1.5 times their regular salary for their attendance.
What is a benchmark job?
Benchmark jobs are used in job evaluations to slot other company jobs around and are also used as a basis for establishing pay programs. A benchmark job is either a job commonly found in the labor marketplace and/or a job that is highly relevant within a company.
What is compa-ratio?
A compa-ratio is a benchmark to determine how close actual pay rates compare to the company defined midpoint of a pay range. A compa-ratio is the average of employee actual pay divided by the range midpoint.
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Wisconsin
Who Must Submit?
- Employers contracted with Wisconsin that meet the criteria outlined by the State of Wisconsin Affirmative Action Plan Requirements document.
What Must Be Submitted?
- Employee and Organization Information
Who Must Be Included
- Active employees as of a given Snapshot date, as well as the applicants, hires, promotions, and terminations of the year prior to the Snapshot date.
Employment Service Delivery System (ESDS) Link
Washington
Who Must Submit?
- Employers contracted with Washington that employ 50 employees or more
What Must Be Submitted?
- Construction: Construction Project and Employee Information (Construction AAP)
- Supply & Service: Employee and Organization Information
Who Must Be Included
- Construction: Employees on payroll over a period of one year.
- Supply & Service: Active employees as of a given Snapshot date, as well as the applicants, hires, promotions, and terminations of the year prior to the Snapshot date.
Employment Service Delivery System (ESDS) Link
Rhode Island
Who Must Submit?
- Employers contracted with Rhode Island that have state contracts of $50,000 or more and employ 50 employees or more
What Must Be Submitted?
- Construction: Construction Project and Employee Information (Construction AAP)
- Supply & Service: Employee and Organization Information
Who Must Be Included
- Construction: Employees on payroll over a period of one year.
- Supply & Service: Active employees as of a given Snapshot date, as well as the applicants, hires, promotions, and terminations of the year prior to the Snapshot date.
Employment Service Delivery System (ESDS) Link
Pennsylvania
Who Must Submit?
- Employers that have apprentice programs registered with the Pennsylvania Council
- Highway construction contractors with Federal-aid PennDOT contracts of $10,000 or more
What Must Be Submitted?
- Employee and Organization Information
- Construction Project and Employee Information
Who Must Be Included
- Registered apprentices in workforce.
- Employees on payroll over a period of one year.
Employment Service Delivery System (ESDS) Link
Ohio
Who Must Submit?
Employers contracted with Ohio that meet one of the following criteria:
- Supply & Services contract of $5,000 or more
- Construction Contracts of $50,000 or more and they employ 50 employees or more
Employers contracted with Ohio for construction work
What Must Be Submitted?
- Construction: Construction Project and Employee Information (Construction AAP)
- Supply & Service: Employee and Organization Information
Who Must Be Included
- Construction: Employees on payroll over a period of one year.
- Supply & Service: Active employees as of a given Snapshot date, as well as the applicants, hires, promotions, and terminations of the year prior to the Snapshot date.
Employees on payroll over a period of one month.
Employment Service Delivery System (ESDS) Link
New York
Who Must Submit?
- Employers contracted with New York – largely depends on the state agency.
What Must Be Submitted?
- Employee and Organization Information
Who Must Be Included
- All active employees as of the chosen Snapshot date.
Employment Service Delivery System (ESDS) Link
New Mexico
Who Must Submit?
- Employers with 10 or more employees in New Mexico that are bidding on state contracts
What Must Be Submitted?
- Employee Pay Information
Who Must Be Included
- All active employees as of the chosen Snapshot date.
Employment Service Delivery System (ESDS) Link
New Jersey
Who Must Submit?
- Employers contracted with New Jersey for construction work
What Must Be Submitted?
- Employee and Organization Information
Who Must Be Included
- Employees on payroll over a period of one month.
Employment Service Delivery System (ESDS) Link
Nevada
Who Must Submit?
- Employers with 5 or more registered apprentices in Nevada.
What Must Be Submitted?
- Construction: Construction Project and Employee Information (Construction AAP)
- Supply & Service: Employee and Organization Information
Who Must Be Included
- Registered apprentices in workforce.
Employment Service Delivery System (ESDS) Link
Minnesota
Who Must Submit?
- Employers contracted with Minnesota that meet the following criteria:
- State Contract for goods and services of $100,000 or more
- Employ 40 employees or more
What Must Be Submitted?
- Employee and Organization Information
Who Must Be Included
- Active employees as of a given Snapshot date, as well as the applicants, hires, promotions, and terminations of the year prior to the Snapshot date.
- Employees on payroll over a period of one month.
Employment Service Delivery System (ESDS) Link
Massachusetts
Who Must Submit?
- Employer with 100 or more employees in Massachusetts
- All state contractors providing construction or design services
What Must Be Submitted?
- EEO-1 Reports of the Prior Year
- Weekly Employee Pay Information
- Employee and Organization Information
Who Must Be Included
- All active employees as of the chosen Snapshot period. The Snapshot period is defined as a single pay period between October 1 and December 31 of the reporting year.
- Active employees on payroll
- Employees on payroll over a period of one month.
Employment Service Delivery System (ESDS) Link
Maine
Who Must Submit?
- Employers contracted with Maine with a state contract of $50,000 or more
What Must Be Submitted?
- Construction: Construction Project and Employee Information (Construction AAP)
- Supply & Service: Employee and Organization Information
Who Must Be Included
- Construction: Employees on payroll over a period of one year.
- Supply & Service: Active employees as of a given Snapshot date, as well as the applicants, hires, promotions, and terminations of the year prior to the Snapshot date.
Employment Service Delivery System (ESDS) Link
Kentucky
Who Must Submit?
- Employers contracted with Kentucky that meet either of the two criteria:
- State contracts of $250,000 or more
- Employs 8 employees or more
What Must Be Submitted?
- Construction: Construction Project and Employee Information (Construction AAP)
- Supply & Service: Employee and Organization Information
Who Must Be Included
- Construction: Employees on payroll over a period of one year.
- Supply & Service: Active employees as of a given Snapshot date, as well as the applicants, hires, promotions, and terminations of the year prior to the Snapshot date.
Illinois
Who Must Submit?
- Employers with 100 employees or more, with at least one location in Illinois
What Must Be Submitted?
- Employee Pay Information
Who Must Be Included
- Pay information of all employees during the 12-month calendar year immediately prior to the deadline or recertification due date.
Connecticut
Construction employers contracted with Connecticut that meet either of the two criteria:
- Your company is the construction manager of the project, OR
- The project does not have a construction manager, your company has a state contract with the owner of the project, and the state-funded portion of your company’s contract value $1,000,000 or more
Construction employers contracted with Connecticut that meet either of the two criteria:
- The project does not have a construction manager, your company has a state contract with the owner of the project, and the state-funded portion of your company’s contract value is between $50,000 – $999,999.99 OR
- The project has a construction manager and the state-funded portion of your company’s contract value is $50,000 or more.
What Must Be Submitted?
- Construction Project and Employee Information (Construction AAP)
- Subcontracting Information – must show that company set aside certain amount of $$$ for exclusive bidding of certified minority owned business enterprises
Who Must Be Included
- Employees on payroll over a period of one year.
- List of Minority owned business enterprises that bid on subcontracts for project.
Employment Service Delivery System (ESDS) Link
California
Who Must Submit?
- Employers with 100 employees or more (payroll or labor contractor), with at least one location in California
- Employers contracted with California with state contracts of $5,000 or more
What Must Be Submitted?
- Employee Pay Information
- Employee and Organization Information (Nondiscrimination Report – similar to AAP defined by EO 11246)
Who Must Be Included
- All active employees as of the chosen Snapshot period. The Snapshot period is defined as a single pay period between October 1 and December 31 of the reporting year.
- ‘Active employees as of a given Snapshot date, as well as the applicants, hires, promotions, and terminations of the year prior to the Snapshot date.
Employment Service Delivery System (ESDS) Link