Announcement

Collapse
No announcement yet.

How to Calculate Overtime?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • How to Calculate Overtime?

    Can someone explain to me how a security company should charge a client overtime? If a guard works 12 hours in one day, should I charge the client overtime? Furthermore, if a guard works more than 40 hours in a week, should I charge overtime?

  • #2
    In the real work (non-security) O/T is charged after 8 hour days @ 150% per 2 hours then 200% from them on with paid meal breaks every 4 hours plus a meal allowance.

    In Security there is no such thing as O/T per officer as you COULD bring in another officer to replace the first one if they have worked excessive hours. Most of our shifts are 12 hours usually and if you worked 12 or 17 hours you got the same flat rate (don't mind that on Sundays and public holidays).

    Perhaps have a set rate and then charge an Ad-Hoc premium rate for any O/T ? Not all companies pass on any extra $$ they make on a body - believe me I saw this first hand on a CPP job where I was paid extra well but their fees were 10 times what I was paid.
    "Keep your friends close and your enemies even closer" Sun Tzu

    Comment


    • #3
      Is the company requesting the same guard for the 12 hour shift. If so you should have no problem letting them know the cost for the excess over the 8 hours will cost them 150% more than they pay for the first eight hours worked.

      If the extra time over eight hours worked is because your company does not want to, or can't, get another employee to work the excess hours, you will probably have to asorb the additional cost. (Unless the contract you have with the company has a claus about this situation that specifically deals with this issue.)

      Comment


      • #4
        "Contract" overtime and actual payroll overtime are two different things.

        For "contract" overtime, you would identify the posts you need to fill and the required 8-hour shifts needed to man those posts to meet contract specs to derive straight-time man-hours for the contract. These would all be charged at your straight-time rate. However, if the client for some reason specifies shifts in excess of 8 hours, or has a special event, strike, etc. calling for hours in excess of the contractual straight-time hours, those would be contractual overtime hours if they cannot be filled at straight time, and would be both paid and charged at 1.5x your contract straight-time rate.

        On the other hand, suppose that you do not have enough personnel to fill the straight-time shifts called for in the contract, so that you must have people working overtime. This is "payroll" overtime, not "contractual" overtime. It is an added cost in fulfilling your contract, just as it would be if a required vehicle broke down and needed repairs. Since this is your own management failure, so to speak, you could not charge the client the overtime that was required to fulfill what amount to the straight-time hours called for in the contract.

        In summary, if I as the client require 4 full-time people at 8 hours each, I can be charged straight time for those hours. If I then for some reason require more hours than the straight-time hours called for in the contract, I certainly can be charged for the overtime.

        On the other hand, if you as the security contractor only have 3 people available to fill my 4 straight-time shifts so that you must ask your people to work overtime, that's your problem, not mine.
        Last edited by SecTrainer; 10-31-2007, 10:49 PM.
        "Every betrayal begins with trust." - Brian Jacques

        "I can't predict the future, but I know that it'll be very weird." - Anonymous

        "There is nothing new under the sun." - Ecclesiastes 1:9

        "History, with all its volumes vast, hath but one page." - Lord Byron

        Comment


        • #5
          Originally posted by GordonSecurity View Post
          Can someone explain to me how a security company should charge a client overtime? If a guard works 12 hours in one day, should I charge the client overtime? Furthermore, if a guard works more than 40 hours in a week, should I charge overtime?
          Geez, beats me!!
          Richard Dickinson
          Dickinson Security Management Group, LLC
          DSMG Provides a Variety of Software Products and Consulting Services to the Contract Security Industry
          www.hrdickinson.com

          Comment


          • #6
            Originally posted by hrdickinson View Post
            Geez, beats me!!
            Now your just being sarcastic.

            Sounds like they got some really good overtime benefits down under.

            All the various types of jobs I've had, overtime was paid over 40. I've heard of it being over 80 in a pay period of 2 weeks. There are sometimes premiums paid for shifts, such as 2nd and 3rd shift. This was like a quarter or .50 an hour.

            I'm assuming here, but if the contract you for 24/7 or whatever the times may be, the price you give them should cover that. If they ask you to stay longer (I have no idea why), you should have something in your contract that specifies additional hours will be billed at xx. Maybe even additional hours from 6am to 6pm m-f at xx, other hours at yy, sundays at zz. Whatever fits. You could put in something like a minimum amount of hours charged if an extra guard has to be brought in, and it could be different rates if it's an additional versus and extension of hours.

            But as said above, the guard business is a 24 hour business. The customer will understand shift premiums and holiday premiums on additional hours, but not overtime, unless it's a last minute deal. If they call you at 5:00 and ask that the position that gets off at 6:00 stays, you could probably reason with the customer that it's late to get a replacement, so it will be overtime for at least a while.
            sigpic
            Rocket Science
            Making everything else look simple, since 1958.


            http://my.opera.com/integrator/blog/
            One Man's Opinion

            The Future. It isn't what it used to be.

            Comment


            • #7
              Originally posted by hrdickinson View Post
              Geez, beats me!!
              Seems to me I heard one time about some kind of software that would help us work through little problems like these, but I'm probably thinking of something else.
              "Every betrayal begins with trust." - Brian Jacques

              "I can't predict the future, but I know that it'll be very weird." - Anonymous

              "There is nothing new under the sun." - Ecclesiastes 1:9

              "History, with all its volumes vast, hath but one page." - Lord Byron

              Comment


              • #8
                Thanks to all. I appreciate your responses!

                Comment


                • #9
                  OT depends on your state laws.

                  Alaska's laws are nice. Over 8, or over 40, and it's OT.

                  Given that I work 2 weeks on 2 weeks off with 12 hour shifts, I make a months worth of wages in 2 weeks due to the OT... or thereabouts.

                  And I have 2 weeks off.
                  Overmotivated and Underpaid... I'm a Security supervisors wet dream...

                  Comment


                  • #10
                    In Minnesota, unless you are covered under some union contract, you get time and a half over 40 hours in a week and that is it. I have worked up to a 20 hour shift and it wasn't overtime in and of itself.

                    I have heard of union contracts that specified overtime in excess of 8 hours.

                    SecTrainer's post was dead on. Is the overtime your doing or the client's? The client can't be expected to pay overtime due to the contract companies inability to attract, retain, and properly schedule officers.

                    Comment


                    • #11
                      Originally posted by CorpSec View Post
                      I have worked up to a 20 hour shift and it wasn't overtime in and of itself.
                      Now that's just wrong. I personally think if you're working 12 hour shifts, you should get ot if you have to work longer. (unless you ask to pull a double or something, or agree to it to cover somebody who asks you.
                      sigpic
                      Rocket Science
                      Making everything else look simple, since 1958.


                      http://my.opera.com/integrator/blog/
                      One Man's Opinion

                      The Future. It isn't what it used to be.

                      Comment


                      • #12
                        Originally posted by integrator97 View Post
                        Now that's just wrong. I personally think if you're working 12 hour shifts, you should get ot if you have to work longer. (unless you ask to pull a double or something, or agree to it to cover somebody who asks you.
                        I ended up getting OT for it because I was full time and it pushed me over 40 hours for the week. But that was the only reason. Had I not gone over the 40 hours for the week I would have gotten no extra compensation for the 20 hours shift.

                        Comment


                        • #13
                          Originally posted by CorpSec View Post
                          I ended up getting OT for it because I was full time and it pushed me over 40 hours for the week. But that was the only reason. Had I not gone over the 40 hours for the week I would have gotten no extra compensation for the 20 hours shift.
                          "Overtime" is defined by Federal law (the Fair Labor Standards Act or FLSA) as work in excess of 40 hours in one week, but may further defined by each state as well - sometimes on both a "per 24-hour" and "per week" basis - e.g., more than 12 hours in any 24-hour period or more than 40 hours per week. Your state Department of Labor (or whatever it's called) can advise you about what constitutes overtime for your state. Or, you can try Googling the question as follows:

                          definition overtime Idaho
                          definition overtime Texas

                          ...etc.
                          "Every betrayal begins with trust." - Brian Jacques

                          "I can't predict the future, but I know that it'll be very weird." - Anonymous

                          "There is nothing new under the sun." - Ecclesiastes 1:9

                          "History, with all its volumes vast, hath but one page." - Lord Byron

                          Comment

                          Leaderboard

                          Collapse
                          Working...
                          X