Driver pay: per stop vs hourly
Weekly cost of paying drivers per stop or by the hour, including FLSA overtime on piece-rate pay.
Expert check pending. This tool shows its formula, cited sources and assumptions with every result, and it's included in its role plan. A qualified expert in this trade hasn't signed the method off yet, so check the result against your own code, engineer or supplier before you rely on it.
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- Your own numbers, worked out as often as you like
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- 4 cited sources, linked, with the checks to make
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Example result · fictional numbers
What you get: pay plan comparison
Worked out by this tool from its default inputs. Its role plan lets you run your own numbers, print the sheet and save it.
The hourly plan is cheaper by $159.50 a driver a week, $85,850.88 a year for 10 drivers with payroll taxes
- Hours per week
- 50.0 (10.0 overtime)
- Per-stop pay with overtime
- $1,424.50 (regular rate $25.90/h)
- Hourly pay with overtime
- $1,265.00
- Cost per stop
- per-stop plan $2.04, hourly plan $1.81
- Minimum wage check
- Per-stop plan meets the minimum
Pay stub, per-stop plan (one driver, one week)
- Piece earnings
- 700 stops at $1.85 = $1,295.00
- Bonus
- None
- Regular rate
- $25.90 an hour ($1,295.00 over 50.0 hours)
- Minimum wage top-up
- None needed
- Overtime premium
- 10.0 hours at half of $25.90 an hour = $129.50
- Gross pay
- $1,424.50
Also on the sheet
- Pay stub, hourly plan (one driver, one week) · 4 lines, starting with “Straight time”
- Plan comparison for the fleet · 7 lines, starting with “Stops an hour”
The plain-words read of this example
At 700 stops and 50.0 hours a week, the per-stop plan pays $1,424.50 and the hourly plan $1,265.00, so hourly is cheaper. The piece-rate regular rate is $25.90 an hour, and each of the 10.0 overtime hours adds half of it, as the FLSA pieceworker rule requires. It clears the $15.00 an hour minimum; a slow week at 100 stops a day still does. A per-stop rate of $1.64 would cost the same as hourly pay.
4 cited sources
- 29 CFR 778.111, Pieceworker (Legal Information Institute, Cornell Law School (eCFR text))
- Fact Sheet #56C: Bonuses under the Fair Labor Standards Act (US Department of Labor, Wage and Hour Division)
- State Minimum Wage Laws (US Department of Labor, Wage and Hour Division)
- Topic no. 751, Social Security and Medicare withholding rates (Internal Revenue Service)
Plus 6 step-by-step checks, a print layout and a link that reopens it with your numbers.