MOM, CAN YOU HELP ME WITH MY HOMEWORK? Eli has been pretty self-sufficient since starting middle school a few weeks ago, but he needed a little assist with his math last night. He started reading aloud:
"Ryan earns a paycheck of $52 per day at Bob's Burger World. Complete the table to show how much he earns depending on how many hours he works." When you do the math, it comes out to $6.50 per hour.
Then my HR head exploded because of everything that's wrong with this scenario.
First of all: $6.50 is below the federal minimum wage (not to mention many localities, which mandate a minimum wage higher than the federal rate). Granted, if Ryan is below a certain age, he may be paid something less than minimum for a brief initial period on the job, but otherwise, NO. It doesn't say if he's waiting tables and earning tips, so we have to assume he's in the back doing food prep or dishes or something.
But the worksheet says Curriculum 2.0, which ought to mean this question is not one from 20 years ago, when $6.50 would have been a damn fine wage for our boy to be flipping burgers.
Second of all, his paycheck isn't $52. He does not bring home $52. Even if he earns less than would require him to pay federal and state taxes this year, he still owes social security and medicare. On $52, his share is $3.98, so his best-case, net actual paycheck is actually $48.02.
Unless Bob is paying him cash under the table. (Bad, bad Bob.)
Third of all, this table goes from 1-8 hours then jumps to 12. TWELVE HOURS? How old is Ryan? Do child labor laws apply here? If so, is this during the school year, or a summer job? Does he need a work permit? Furthermore, is this 12-hour day on top of 32 hours already worked in the week? If so, Ryan needs to be paid time-and-a-half for the last 4 hours on that 12 hour day.
I'm also wondering if Bob charges Ryan for meals, or the logo tee-shirt he's required to wear. I start to get annoyed with Bob. I wonder if Bob could use an HR consultant to help him stay in compliance with employment laws. After all, it's complicated running a business.
This is where my HR mind goes, and even more so since I sat through three days of payroll training last week. But I forced myself to set all of those questions aside, since that really wasn't in the spirit of the homework problem.
Until the next question:
"If Ryan needs to earn $390 to buy an iPad, how many hours would he need to work?"
Well, you know they want you to divide his sub-minimum hourly rate into the total of $390. But that's not really the case, is it? First of all, if Ryan buys the iPad in Maryland, he's going to pay 6% sales tax, so he actually pays $413.40. More, if he agrees to purchase the extended warranty they'll try to sell him. You know he's also going to want a cover for it, and maybe a screen saver. And, he doesn't NET $6.50 in his paycheck. Let's say his hourly rate after required taxes is actually $6.00. So instead of 60 hours, it's actually going to to take closer to 70 hours. Unless Bob has him working 12 hour days, and is paying him time-and-a-half for hours in excess of 40 per week. Or he's earning tips. Or....
MOM! STOP! Eli was becoming exasperated. So we went to the next question, wherein Ryan got a raise of $2.50 per hour, and now how much does he earn in an 8-hour workday?
Well, at least now Bob is complying with minimum wage law! He'll gross $72, but net only $66.49. Because taxes.
I'm starting to feel bad for Ryan. I bet Bob never even had him fill out tax withholding forms, or checked his work authorization. I wish Ryan would look for another job, with a reputable employer, who pays above minimum wage and appreciates Ryan for his work ethic and attention to detail. After all, he's been slaving away in that hot kitchen for months, and yes, he got a raise, but that's probably only because someone called out Bob on that minimum wage thing and he wanted to avoid a wage and hour audit.
Eli rolls his eyes at me and finishes his homework. He doesn't understand all these questions I've been asking, and thank goodness for that. He's still in middle school. He has a few years before these problems jump off the worksheet and into his actual life.