Rudy Talks: Pay Per Pool

NOTE: Rudy is a Pool Guy, Dammit! Not a labor law attorney or expert... That said - In this conversation, Rudy Stankowitz discusses the topic of how to pay swimming pool technicians. He explores the different methods of payment, including per pool, hourly, and piecework pay. Rudy explains the intricacies of piecework compensation and the guidelines set by the Fair Labor Standards Act (FLSA). He emphasizes the importance of ensuring compliance with federal and state laws, calculating regular and overtime pay, and tracking hours worked. Rudy also highlights the advantages and challenges of implementing a piecework pay system and provides tips for setting fair rates and maintaining transparency with employees.

keywords

swimming pool technicians, pay methods, per pool pay, hourly pay, piecework pay, Fair Labor Standards Act, FLSA, compliance, regular rate of pay, overtime pay, advantages, challenges, setting fair rates, transparency

takeaways

• There are different methods of paying swimming pool technicians, including per pool, hourly, and piecework pay.
• Piecework pay involves compensating employees based on the number of pools they service rather than the hours they work.
• Compliance with the Fair Labor Standards Act (FLSA) is crucial when implementing piecework pay.
• Calculating the regular rate of pay and overtime pay is necessary to ensure fair compensation.
• Implementing a piecework pay system can increase productivity and job satisfaction, but challenges such as maintaining quality and variability in pay should be considered.
• Setting fair rates and maintaining transparency with employees are important for the success of a piecework pay system.

titles

• Calculating the R

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Transcript

Rudy (00:01.404)
Hey everybody, this is Rudy Stankowitz. Welcome to Friday. Welcome to Friday. Before we jump in, I wanna say thank you for taking time from your day to check in, to listen with me because you are a badass.

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And I am honored that you are taking time from your day to check in with me each Friday. Today, I want to jump right into it. I want to discuss something that comes up often, something that we talk about frequently, and that's how should we pay our techs? How do you pay your tech now? Do you pay them hourly? Are they on salary?

Do you pay them per pool? These are the things that I want to look at. Mostly what I want to look at is the whole pay per pool thing versus an hourly wage. So I do want to get into that. If you've been doing this for a while and just want to double check, if you are brand new to the industry or if you've been here for a minute and now it's time to finally bring on your first employee this session, pay attention.

We're gonna cover some good stuff

Rudy (01:46.618)
As a swimming pool service company owner, hiring employees for the first time can be challenging.

Rudy (01:57.008)
One of the more popular methods of paying the employees, like we mentioned, is per pool. They call that piece work. They call that piece work.

Rudy (02:14.354)
That's where the employees are compensated based on the number of pools they service rather than the hours that they work.

Rudy (02:31.614)
So I'd like to do a detailed look into piecework compensation for swimming pool technicians as per the guidelines of the National Department of Labor.

I want to discuss the intricacies of piecework when hourly pay is required.

and how to implement a fair and compliant system.

Rudy (03:08.84)
hope to equip you guys with the knowledge to make a very informed decision that can boost your productivity and ensures job satisfaction among your employees.

Rudy (03:33.586)
With that said, first, there are a couple of different types of piecework.

Rudy (03:55.464)
First, there are a couple of different models of piecework pay.

Rudy (04:09.694)
straight piecework, that involves an employee being paid a fixed rate for each pool that they clean, no matter how many they clean. For example, you might be paying somebody $12 per pool. So whether they clean five pools or 15 pools in the day, they were paid or will be paid $12 for cleaning each

Rudy (04:40.658)
Another type is called differential piecework.

This is where employees are paid at different rates depending on their productivity. So in other words, you might have that $12 per pool model up to 10 pools. However, if that employee can get 15 pools in a day, now we move the pay for all of the pools up to $15 per pool. So they're getting incentivized based off of their ability to do more. Not just do more, do more correctly.

Rudy (05:22.846)
And then finally, we have piecework plus hourly rate. This is where there is a guarantee. The employees are paid a piece rate. However, they're guaranteed a minimum wage. So for example, if we're paying $12 per pool,

Rudy (05:49.182)
But $20 an hour and they only get one pool done, we're going to pay them the $20, not just the $12.

Rudy (06:07.528)
Fair Labor Standards Act, FLSA, sets the federal standards for piecework pay. According to the FLSA, the total compensation for piecework must meet or exceed

the federal minimum wage when averaged over the total hours worked. This is crucial to ensure that employees are fairly compensated for their time. Additionally, the FLSA mandates that employees must receive overtime pay for hours worked over 40 hours in a week.

Rudy (06:49.394)
That's calculated at time and a half. That's even if you only pay per pool.

Over 40 hours gets them overtime.

It is also important to consider state regulations, local regulations, any laws, any other laws that can vary or impose additional requirements beyond federal regulations. Remember, state laws, county laws, they're allowed to be more strict than federal laws. They just cannot be more lax than federal laws. So it is important to take a look at those local business laws, those local employment laws as well.

Rudy (07:38.952)
to implement PeaceWork Pay for your employees, it's best to follow a very structured approach.

Rudy (07:49.96)
Start by defining the tasks and rates.

Rudy (07:58.75)
clearly outline what tasks will be paid on a piecework basis. And then make sure you establish fair compensation.

Rudy (08:11.366)
It is essential to track the hours worked meticulously to ensure compliance.

with minimum wage and overtime requirements.

Rudy (08:28.67)
Calculating the regular rate of pay involves dividing total piecework, earnings,

Rudy (08:37.33)
by the total hours worked. It is crucial to verify that the regular rate of pay meets or federal and state minimum wage.

Rudy (08:56.166)
Additionally, calculating overtime pay is necessary.

Rudy (09:06.174)
We do this by multiplying anything over 40 hours in a single week, the hourly rate by one and a half, 1 .5.

Rudy (09:37.054)
So let's take a look at an example. If an employee services 50 pools in a week, a 40 -hour work week, at, let's say, you're really generous, $50 a pool. I know. I know. Just for the example, the total earnings would be 50 multiplied by $50. That would give us $2 ,500.

The regular rate of pay would be calculated then by dividing the 2 ,500 by 40. That results in $62 .50 per hour. Since the $62 .50 per hour exceeds the federal minimum wage, then the employee is compliant. If the employer worked 45 hours, overtime would need to be calculated. The overtime hours would

45 hours minus 40 giving us the five hours of overtime.

The overtime pay would be based off of what they earned that week. The number of pools divided by 40 hours, the number of, the amount of money they made off of the 40 pools divided by the number of hours worked, or divided by 40, giving the 62 .50. So we'd have to multiply that. The overtime hours would be 45 minus the 40 that we get. So we have five hours of overtime. Now how it's paid.

What this overtime is paid on is based upon what the employee earned that week. So that goes back to the 50 pools at $50, giving us the 2 ,500 divided by 40, which is $6 2.50 per hour. We're basing the overtime off of that $6 2.50 which means that that overtime hours would be paid at $93 .75 per hour. The total overtime pay

Rudy (11:41.296)
Again, it's based off of what they earned hourly that week, even though they were paid per pool.

Rudy (12:11.3)
Even in a pay -per -pool system, a piecework system, there will be situations where hourly pay is necessary. That's going to occur during nonproductive times. They have to be compensated at at least the minimum wage for anything they do that is not cleaning pools, loading the truck, washing the truck, driving to the gas station.

Going to the distributor picks something up. at the distributor. The distance drive time between each of the pools, they have to be paid at least minimum wage to do these tasks because it's above and beyond cleaning a pool.

Rudy (13:24.062)
So let me give you an example. If you have an employee go to a pool and they're ready to clean it, but for some reason they have to wait. I don't know. There's a truck parked in the driveway that needs to move. Maybe it's a torrential downpour and you want them to sit there and wait it out. You've got to pay them an hourly rate for that wait time on top of what they get for cleaning the pool when they get to clean it, when they actually get to do

Rudy (13:54.738)
Setting fair piece rates is crucial for the success of any piecework pay system. Benchmarking involves comparing rates with industry standards and of competitors

Rudy (14:12.232)
Setting fair piecework rates is crucial for the success of any piecework system, any piecework pay system. Take a look at what your competitors are paying. Make sure that you're in line with that. Make sure you're in line with the going rate. That's how you're going to keep your employees happy. That's how you're going to keep them on

Rudy (14:38.216)
consider the complexity of a job.

Take that into account when you determine how much you're going to pay them per pool. A small 5 ,000 gallon screened in pool salt water with in -floor cleaning.

You can't pay somebody to clean a 30 ,000 gallon outdoor pool in a wooded area the same $12 that you would have them do the small pool. It doesn't make sense. It's not fair.

Rudy (15:17.158)
involve your employees in the rate setting process so they understand what's going on, so they know where it's coming from, and they know how these decisions are made.

Rudy (15:30.79)
Monitoring and adjusting piecework on a regular basis is super important.

Rudy (15:41.202)
It helps us to make sure that your rates remain competitive and fair.

be open to adjusting rates based on feedback and changes in the market or in company operations. Something could change at a house that makes a pool more challenging to maintain.

That's not that same $12 pool.

Rudy (16:12.382)
So don't just pay them the same rate across the board per pool. And don't forget, they need to be paid an hourly wage for anything they're doing that is not cleaning a pool up to and including their drive time to get to that pool or a wait time before they can start at that pool. If you have them stop to pick something up along the way, they have to be paid an hourly wage for that. Then based off of their pay per pool, like we said a moment ago, take that week salary.

whatever that works out to be divided by 40, that gives you that employee's hourly rate. If they went above 40 hours, we do the same thing, take what they made, divide it by 40, that's their hourly rate, and anything above those 40 hours, we have to pay them at time and a half. Based off of the per hour rate we just calculated for their week.

Rudy (17:22.544)
ensure your employees understand how piecework pay is calculated, and that they understand their rights under the system.

provide training on time tracking.

and other administrative tasks to ensure that they maintain and you maintain accurate records of their

Rudy (17:52.296)
There are lot of advantages to implementing a piecework pay

we often see increased productivity.

Rudy (18:06.438)
employees are more motivated to complete more tasks.

Rudy (18:14.054)
labor costs become more predictable when they're directly tied to output, allowing for better cost control.

High performers can earn more, leading to greater job satisfaction and, for you, better employee retention. However, are also challenges to consider.

ensuring quality while focusing on quantity can be challenging as your employees might want to rush through tasks to get more

No splash and dash. We have to stay on top of that to make sure this is not occurring. Navigating the legal requirements of piecework pay requires diligence and attention to detail. Variability in pay can affect employee morale, especially if some employees struggle to meet piece rates.

Rudy (19:17.161)
Do understand I am not a labor law advisor or an accountant. So do consult with these people as you sit down and build your piecework protocol.

Rudy (19:37.383)
This keeps your employees happy and keeps your ass out of

Don't go doing something just because, well, the guy on the podcast said, no, talk to somebody in this field. See how it applies to you. It's worth doing because I don't want to see anybody get in trouble and I don't want to see any employees shorted money. It's hard enough nowadays.

Rudy (20:15.806)
To ensure compliance and best practices in your per -pool payment plan system, follow a legal compliance checklist.

Rudy (20:36.488)
Verify that your piecework rates meet or exceed the minimum wage when averaged over the total hours worked.

Rudy (20:48.766)
Calculate and pay overtime for any hours over 40 in a work week. Maintain accurate records of hours worked and piecework completed.

Transparency is key.

Rudy (21:06.878)
Keep the Peace Work Pay system transparent and involve employees in discussions about rates and policies.

Rudy (21:17.256)
Conduct regular reviews of the system to ensure it remains fair and competitive. Implement quality control measures to ensure the focus on quantity does not compromise quality.

Rudy (21:36.934)
Implementing a piecework pay system in your pool service company can lead to increased productivity and job satisfaction when done correctly It's a very popular way to pay people But how many of us are actually paying? Correctly based it off of everything. We've just spoken about think about it if you're not Let's get into compliance

fairly compensate our employee for everything that they do and let's keep our asses out of legal trouble.

By understanding the legal requirements, setting fair price rates, and ensuring compliance, you can create a system that benefits both your employees and your business.

Regularly review and adjust your system to maintain fairness and competitiveness. And always prioritize clear communication and transparency with your team.

Rudy (22:53.49)
The Fair Labor Standards Act, FLSA, is a key resource setting the federal standards for piecework pay.

Rudy (23:14.15)
Industry benchmarks are also valuable. Those offer insight into competitive price rates within the pool service industry.

Rudy (23:28.35)
Transitioning to a pay -per -pool system can be a strategic move for your pool service company. By understanding the intricacies of this compensation method and adhering to the legal guidelines, you can create a system that enhances productivity, motivates employees, and maintains compliance with the labor laws.

Rudy (24:00.871)
By thoroughly understanding the concept of Peace Work Pay, the legal framework surrounding it, and the best practices for its implementation, you can effectively manage labor costs, increase productivity, and ensure compliance with labor laws. Regularly reviewing and adjusting your Peace Work Pay system, maintaining clear communication with your employees,

and involving them in the process will foster a fair and motivating environment.

This comprehensive approach to piecework compensation will ultimately contribute to the success and growth of your pool service company.

Implementing a piecework pay system involves a series of detailed steps, beginning with defining tasks and establishing piecework rates. It's crucial.

establishing peace rates or pool rates.

Rudy (25:12.924)
in establishing piece rates. It's crucial to hours worked to ensure compliance with minimum wage and overtime requirements. Regularly calculating the regular rate of pay by dividing total piece work earnings by total hours worked ensures that your compensation structure remains compliant with federal and state laws.

This approach guarantees that your employees are fairly compensated.

This approach guarantees that your employees are fairly compensated for their work, which is especially important in maintaining morale and productivity.

You don't want to rip off your employees. You don't want to fuck with their money. Just don't. If you didn't know, now you know. We can fix it. But otherwise...

Rudy (26:13.938)
That's the one thing in business that I was always taught, is that you don't fuck with somebody's money.

Rudy (26:23.474)
with Peace Work Pay.

Rudy (26:32.786)
While piecework pay can be highly effective, is also important to understand when hourly pay is necessary. Non -productive time, as I mentioned, such as time in training sessions, company meetings, travel time between jobs, waiting at the distributor, filling up with gas, washing the truck, loading the truck, all of those things, that employee should be paid an hourly rate, even if you pay them per pool.

for those tasks.

Rudy (27:57.822)
So there are several advantages to implementing piecework pay, as we discussed. Increased productivity is often seen. And again, employees are motivated to do more. But we want to make sure that they do more correctly. We don't want anybody to slack on quality in order to get quantity because now we're paying them per pool. That could be a big problem. So we have to find a way to stay on top of

your labor costs do become more predictable because you know how many pools are out

Rudy (28:31.408)
And this does give high performers the opportunity to earn more. It's based on what they

Rudy (28:43.516)
Not how many hours, but what they do in a week.

Rudy (28:49.544)
However, are also challenges to consider.

Rudy (28:59.526)
navigating the legal requirements of peace work.

Navigating the legal requirements of PeacePort Pay requires diligence and attention to detail. Variability in pay can affect employee morale, especially if some employees struggle to keep up to do as

Rudy (29:59.592)
So keep that in mind when you're making these decisions. It's a lot to think about.

Some folks decide just to go with the hourly rate so that way they don't have to worry about being in compliance with all the legal requirements of paying somebody on a per pool basis.

And there are quite a few, as we just discussed.

Rudy (30:27.966)
for better information pertaining directly to your business.

Rudy (30:34.142)
Talk to a labor lawyer. Pull up the FLSA report yourself to see how it applies to PEEF's work and see how what you're doing fits in. And then set up that checklist to make sure that you remain compliant. And most importantly of

even though you're paying them per pool. Stay on top of, track the hours that that employee is working out in the field, that that employee is working each week.

Those are the things that can come back and bite you if you

Rudy (31:18.674)
That's all I have for you guys this week.

Rudy (31:24.03)
If you any questions on any of it, please send me an email. Talkingpools at gmail .com. If I use your question on the show, send you out one of these cool What the Flock Talking Pools hats. It's a nice embroidered

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