Banking Hours? Anyone?
Has anyone here ever worked for a company where any hours worked over 40 in a week get "banked" for use at a later date, like when things slow down before cooling or heating season hit? I had never heard of this before and was curious how it works and if it is legal........
I banked hours for years. It requires trust in your employer and to be honest it probably is not the smartest thing to do. It is your money and if you were to take your extra money and invest it for days or times when there is no work it would make more sense. I was too lazy and it certainly cost me money.
can't say i like that at all. if I'm working more than 40 i want my time & a half .. hell if I'm working past 4:30 i want my time & a half. what happens if you get laid off anyway, fired, or even worse hurt ... do they come out with that "banked" fee ? ...
It's not legal. over 40 hours worked must be paid at time and a half unless you are on Salary. Also employer to get out of OT salaried person must spend something like 60% of their time in supervision of others not doing the work them selves.
I agree. NO WAY I would let my OT get "banked". Not a good idea. The only one making out is the employer. You get no interest on your money, lose OT pay, and get no benefit from it.
Originally Posted by hvac wiz 79
I have never work under such a situation, nor would I.
yea, no. unless it's clearly marked as banked OT. paid in OT time but not taken out immediately. I have used it in the past as to give my self some kind of christmas bonus.
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My dad worked for the state of Illinois, and he would bank his overtime. How it would work is the employee would specify when they wanted to withdraw (up to twice a year). And how much to bank.
Example he would withdraw once in June and in December. He also only banked OT after 4 hours.
The downfall was that he would not gain any interest on his money.
Salary in disguise?
Thanks for the replies. I don't have all the details yet, but it almost sounds like the pay is really salary, but they tell the guys they are hourly so they hustle during the day. I will have to find out more about it.
I worked for a comm'l/ind outfit at one point that banked hours. Do a 8 hr job in 6 and bank the 2. Every 6 months the workers got 10% of "their" net (each worker had a profit and loss sheet)plus their banked hours. It lacked transparency, we had no control of the "overhead" % or what was given back to customers as warranty. Lazy office workers were despised, they were sucking off the field guys tit with no accountability.
The boss wanted us to do PM's on weekends at one point, if it wasn't going to be billed as 1.5 time, then my overtime would have come out of my own P&L check...stupid. What could he do besides pout and suck his thumb.
The general idea was that the worker was partially compensated on performance, but in reality was canned if the numbers were consistently low regardless of what he was willing to accept.
Couldn't keep track of it all to say if it was completely legit or legal, the owner was a sneaky little squirrel.
ya I know most say no way but I remember when I was a lot younger and did comercial out of town work ( stuck in little towns in middle of nowhere ) I was allowed to bank hours. Now I was all for it being I was working long hours and weekends being in the middle of nowhere there was nothing to do and I didn't want to drive back hundreds of miles on a weekend being it would all be drive time for a few hours of time at home.
I had a choice work 40 being there was no point of paying a guy over time if they didn't have to or ...... I could work as many hours as I want and bank them. It was an honor system being a lot of the time I was only one on job site after hours. I just kept record of banked hours and they could easily tell that from the progress of the job you were getting a lot more done then possible at 40 hours a week.
Now at that age with no real friends or relations where I was living , it was all about learning and making money. I had no interest in setting in a bar in a 2 bar town town that rolled up the streets at 7 pm ......and I did a lot of jobs in towns like those .
Yes it could have been a bad deal in a lot of guys opinion but back then it was a better deal for me being and it really got me set up to eventally go on my own. Honestly think it would have been a whole lot differant if I was just a guy putting in 40 a week and setting home. Your never going to be successful that way.
Better just go get a union job and stick to it in that case
Oh thought I better throw this in being I left it out of last post. that shop did pay over time if they had to have you work over 40 being they really needed it done then. It was just a choice to bank it if it was you wanted more hours of work there was no hurry on :grin2
A lot of times it was great for 3 - 5 day weekends and I think things were a lot more lax back over 35 years ago and less worried of getting sued
Last edited by dec; 05-01-2012 at 06:51 PM.
Originally Posted by tuba
Its called "comp time" and I've heard of companies doing it. The employee gets the shaft because usually its 1 for 1.
What happens if you get laid off or move on to a better job ? Do they compensate you for all that OT ??
I used to do it at a residential company. 1hr OT was comped at 1.5hrs vacation. It was put on our checks weekly so it was all above the boards.
Worked out great for taking long weekends.