Wage & Hour: How temporary is a “temporary” increase?

07/30/07

Question: We have a part-time employee who makes $8.00 an hour. She's going to start working full-time for two months to cover for someone going on leave, and we plan to boost her pay to $9.00. Can we return her to $8.00 an hour when she's back to part-time? Answer: There is no legal reason you can't boost, then reduce, this employee's pay. But first, a question: Will she be in a different role, with different or additional responsibilities?

If so, a temporary increase might be appropriate. In this case, document your intent and reasoning. Then meet with the employee and ask her to sign the memorandum to verify that: she understands that the increase will be temporary due to the additional roles or responsibilities, and she understands that when the original role is resumed, her rate of pay will revert back to the regular rate.

If the employee is not taking on a different role or additional responsibilities, then why are you thinking about a temporary increase? If she is paid hourly, and you are increasing the number of hours worked by changing status to full-time, then she will be earning more money without the pay increase.

These products will help you deal with problems of this sort as they come up:
State and Federal Employment Law Manual
The Employer’s Legal Handbook
Payroll/Status Change Form
Fast Answers for People Managers: Time & Pay