Monthly Salaried Student Employees
Some student positions, such as an RA in the dorm, cannot be measured in hours worked. These positions may be paid a monthly salary for fulfilling the requirements of the position. Employees in these positions must be paid no less then the equivalent of minimum wage.
For a student position to qualify for pay by monthly salary, it must meet the following conditions:
- The employee must be expected to perform work that cannot be measured by the hour.
- The expected payment must be a consistent amount each month.
- Required work hours must be approximately the same percent of the month each month.
To calculate the F/T 12-month rate, you should know:
- The actual monthly rate you intend to pay the employee
- The approximate number of hours the employee will work in a month.
How data is calculated:
- The F/T 12-month rate is equal to: The actual monthly rate divided by the appointment percent times 12.
- The appointment percent is equal to the number of hours to be worked divided by 173.33
- The hourly rate is equal to actual monthly rate divided by the number of hours to be worked. (The hourly rate must never be less than minimum wage.)
If you plan to pay a student employee $725.00 per month, the appointment percent can not be more than 57.69%.
$725.00 divided by $7.25 (minimum wage) equals 100 hours.
100 hours divided by 173.33 hours equals 57.69%
If you know this position will require approximately half time to complete each month, the appointment percent would by 50%, which is less than the limit of 57.69%, so would be o.k.
F/T 12-month rate = ($725/.50)*12 or $17400.00
The appointment percent would be 50%
The hours would be 173.33 * .50 or 86.67
The hourly rate would be $725/86.67 or $8.37
You would enter a F/T 12-month rate of $17400.00 and an appointment percent of 50% on the Job form
If you plan to pay a student employee $300.00 per month, the appointment percent can not be more than 23.87%.
$300.00 divided by $7.25(minimum wage) equals 41.38 hours.
41.38 hours divided by 173.33 hours equals 23.87%
This tells you that 23.87 is the highest appointment percent you can enter for this position, and the approximate number of hours that it is expected the job will require each month should not be more than 41.38.
Paying student employees monthly does not exclude you from paying minimum wage, or from paying overtime for over 40 hours per week (Sunday through Saturday).