Original Message -----
September 23, 2006 9:10 AM
[WISPA] Outsourced installations
to the DOL (department of Labor) an employee
can be paid by the hour or for piece work (by the job)
Act requires employers of covered employees who are not otherwise
exempt to pay
these employees a minimum wage of not less than $5.15 an hour as of
1, 1997. Youths under 20 years of age may be paid a minimum wage of not
than $4.25 an hour during the first 90 consecutive calendar days of
with an employer. Employers may not displace any employee to hire
the youth minimum wage.
may pay employees on a piece‑rate basis, as long as they receive at
the equivalent of the required minimum hourly wage rate. Employers of
employees (i.e., those who customarily and regularly receive more than
month in tips) may consider such tips as part of their wages, but
must pay a direct wage of at least $2.13 per hour if they claim a tip
They must also meet certain other conditions.
I suppose that if
these guys manage
to spend over 20 (10 hrs each) hrs on every install for the pay period,
would have to adjust their pay to bring them up to minimum wage. That
been a problem. They average about 3 hrs/install including drive time.
about twice as fast as installs got done back when they were paid
is a win/win/win solution as I see it. The employees like the method
extra money. The customers like the techs getting in and out in a
time. I like getting 2 or 3 installs/day vs 1/day like we got back when
got paid per hour.
We treat their install pay just like regular income. We withhold the
withholdings, deal with the social security, etc.
Lincoln Welder mfg company in Ohio pays EVERY employee piece-wage only.
might get $4/ea to wind motors, $2/ea to install a switch, $7/ea to
wheels on, $1.50 to inspect parts, etc.
They have withholdings, pay social security, etc. They even clock
insure to OSHA that no employee is working more than 120 hrs/week but
method has been in place for years and works very well. The employees
and the unions hate it. It insures that the new guy in training gets
to speed in a reasonable time or washes out. The guy who has been there
years can handle 10 $4 units/hr can make decent money.
Scott Reed wrote:
might want to check with your accountant. I doubt the IRS is going to
you "contract" with people you also employ. You may be liable
for FICA, etc. for all the installs they have done.
Network Design, Installation and Administration
---------- Original Message -----------
From: Pete Davis <[EMAIL PROTECTED]>
To: [EMAIL PROTECTED],
General List <email@example.com>
Sent: Fri, 22 Sep 2006 07:40:09 -0500
Subject: Re: [WISPA] Outsourced installations
> We outsource most of our installs to our employees. The two techs
go out together, and split the $100. Its not unheard of for my techs to
more money on a busy week than I take in my salary, and I am an owner.
> They make $x/hr to do service calls, uninstalls, AP maintenance,
if they can keep those caught up, we schedule an install (usually 1 or
for 2 techs). They are OFF the clock for installs, and get
provide the van, the tools, the gas, the CPE, and all consumables
caulk, cat5, ends, jacks, faceplates, etc). That keeps them from
turning in overtime. It gives them an incentive for completing installs
in a timely
manner (2 hr install = $25/hr/tech). Any service calls resulting from a
faulty/sloppy install in the first 30 days result in the installer
on site to fix it on THEIR time, so they have an incentive to get it
the first time around.
> We have a few other local IT/phone/security system consultants who
occasionally bring us a customer and offer to install them, since they
existing consulting customer for them anyway and usually selling them a
network/phone system/security system/audio system anyway. We will
them $125 or $150 and provide the CPE and minimal technical support.
bring us the contract/customer worksheet for our files, and we don't
to go on site. Since we usually charge $149 for the setup, we often let
consultant charge whatever he wants, and keep it, and put in as many
cable runs and terminations as they can sell. We just start picking up
> Those are good relationships to have.
> Pete Davis
> chris cooper wrote:
sure this has been covered before…..
any of you outsourced installations? If so, has it been a positive
experience, how much do you pay a contractor?
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