The rules on overtime (and exempt vs. non-exempt employees) are changing. It is possible that the company is hiring you as hourly to ensure that they comply. If you are salaried and this is a non-exempt position, they may not let you work more than 40 hours a week or they have to pay you OT. Paying a salaried employee OT is much more complicated for the company than one who is set up as hourly. I am less likely than some of the others here to jump to the conclusion that they are trying to take advantage of you.
If the position is full-time, you should ask about benefits – at the very least, when you will be eligible, and get that in writing. NO vacation is unusual. Again, if it is unpaid vacation (and you are regularly going to be earning OT), it may all be the same, but you want to know how much time you can take off. That’s important to your mental health.
If you feel that this position is one in which you will learn and become more marketable, this arrangement could suit you for a year – it all depends.
I’d be concerned with the lack of benefits, specifically sick and vacation time. You most likely can stay on your parents’ health insurance until 26 but will have to pay OOP for dental once you are not a full time students in most cases. But…what happens if you need a week off due to illness or injury? Will you be able to meet your housing expenses? And certainly no one wants to work full time for a year without some time off. I value my time off more than my income so unless this job is a definite stepping stone in your industry, I’d negotiate with a bottom line in mind and walk away if its not met.
It seems like a very reasonable question for you to ask why you are hourly whereas you understood others are salaried. Ultimately though, if it were me, I would not push too hard given you are starting your career and need the experience to further your career.
I remember being upset when I started out when I learned a co-worker was making a few thousand more per year than I was making. Looking back on it, the money is very immaterial compared to the skills, experience I was gaining. Hard to see that in the heat of the moment…
It doesn’t sound as if they would be hiring you as an independent contractor, but if they are, realize that you will have to pay both sides of social security. That’s a major bite.
I’d ask about benefits and time off, but it sounds as if you should take the job anyway. Experience is usually the most important thing one can glean from a first job.
Salaried has it’s dark side…you are essentially expected to work for “free” until the job is done. If you are hourly, you are compensated clearly for extra time put in a project, etc.
I would proceed with negotiation, keep the hourly rate but dig in and try to get the benefits. Health insurance, paid time off, etc. are a glorious thing.
And I’m sure you know this but do NOT say “from asking around I hear that X is usually offered.” No one wants an employee who blabs or initiates confidential salary and benefits conversation.
congrats on the job offer. negotiating may or may not be ok. it could be seen as disrespectful/ungrateful and lead to the offer being pulled. on the other hand you maybe able to get vacation time and or benefits (health benefits should be offered if they have more than 50 employees anyway)
since nobody knows the culture of the company or the HR folks at the company…it is hard to tell you how to proceed. maybe take the job…prove yourself and comeback at it 5-6 months in once they see how awesome you are.
I take the conservative approach with issues relating to work and money…that does not make me correct it just how my mind works. risk takers may come out way ahead (or go down in flames) i like slow and steady and feeling as if i know more likely where i am going to be without rattling the cage.
There is some crazy new law coming down the pike on exempt and non exempt employees. The cutoff is at 50k. If you make under that you will be non exempt and must be paid hourly. We’re waiting to see when it goes into effect. It will be an enormous headache starting to track employees who aren’t sitting in an office.
It could be they’re shifting to non exempt ahead of the change.
But go ahead and ask. You may be in trouble a few years from now when you’re no longer under your father’s insurance if you stay. It could be an unspoken reason why you were hired.
eyemamom…you are correct… however it is a rule not a law , the next president can drop it just as fast as this one enacted it.
many people in this subset of employees will find themselves with major cuts in income (and strict OT policy enforcement from their employers… once the government shifts the rules) and some people will be in the unemployment line as companies adjust to protect themselves from these new monetary burdens.
but I do agree the OP might be a new employee seeing the company respond to the new bureaucratic rules. that said it appears they sound like they may earn enough salary to be exempt.
A 40 hour work week is a benefit as well. I know some folks struggle to get 40 hours and pay the bills but I don’t remember the last time I worked a 40 hour week on a regular basis. As @carachel2 pointed out, being labeled exempt or salaried has a dark side at times. Generally salaried should have some control of work schedule, however that does not mean short hours.
Thank you all for your responses. Much to think about. Regarding benefits, I have the option to enroll in the employee program but I would have to pay for it out of pocket…it would cut into my hourly pay essentially.
I was told that you are usually offered salary in addition to benefits so benefits wouldn’t be coming out of your own pocket
remember no matter what you do…do not ever say to HR I heard from asking around that most people get this or that.
that is 100% guaranteed to upset them! if you do decide to negotiate say I would really like to get a week or two of vacation time or health benefits (say 50% covered by the company)
Really don’t know what’s going on but if what @anomander is saying is true (regarding the company not minding if I leave at anytime), I will definitely be on the lookout for better opportunities. I am in the entertainment field and sometimes it’s best not to be tied down to a corporate job in case the opportunity of a lifetimes calls…ie. working on a major motion picture
“Regarding benefits, I have the option to enroll in the employee program but I would have to pay for it out of pocket”
Are you sure you would be paying the full cost of the benefits out of pocket? Or are you paying just the employee portion? It is pretty common for both employer and employee to pay a portion of things like healthcare, dental, etc. An employer paying the FULL cost of healthcare is more unusual these days.
Any clarification on paid vacation and holidays?
I am not sure whether it’s the full cost but the point is that benefits do not come with the package. …I would have to cut into my hourly pay to pay for them. In my program, I am a contracted employee and I also have the option to pay for health benefits. I opted not to
I will speak to the recruiter on Tuesday and ask him for further clarification. Will use the questions and take heed to the warnings sketched out in this thread
"I am not sure whether it’s the full cost but the point is that benefits do not come with the package. …I would have to cut into my hourly pay to pay for them. "
This is not unusual and is the norm actually. There is a difference between no benefits and having to pay what is referred to as the “employee’s share” of the benefits. Most employees have some “skin in the game” these days. This is true for both hourly and salaried employees.
When you use the word “recruiter” is this someone from an outside agency, not an employee of the company, or is this someone from human resources within the company?
Sorry for all the questions but for posters to adequately advise you on what you should do, it is helpful to have an accurate understanding of your situation and the dynamics.
Ask whether you would be paid as a 1099 or w-2 - if you are on 1099, you have to pay 100% of social security. That’s 7.5% more than you would have taken from your wages as a w-2. Then who pays you? Network or an agency? Likely it’s an agency so the benefits offered won’t be swanky as a major company but like a temp agency’s perks - ymmv but generally not the best options/lowest cost. Also if you are working in NYC as an independent contractor - research the additional tax for independent contractors
working in NYC- MCTMT and UBT. That can add an addition 4.34% tax if you are 1099. Laws may have changed but basically I’d want to make sure your tax burden is understood. My husband has been a 1099 contractor and generally NYC rates need to be higher to account for these NYC taxes.
@doschicos thank you for your responses. I asked a mentor at the company what my contract means and she phrased it as “your offer does not come with benefits but if you want them you have the option to pay for the company’s benefit plan separately”. Paying for the benefits myself would then lower my wage to slightly below the median wage.
This is why I asked if this was a fair deal and/or common. Knowing such info would greatly help me know what to say to HR during our meeting.
But maybe overtime pay would compensate.
The recruiter btw is from the media company’s HR department
Well then I hope this exempt not exempt thing is postponed until the election. What a headache it will be, one week an employee in the field may work 38 the next 42. I don’t want to pay overtime for one week and cut their pay the next. It will be a lot of payroll headaches.
If the OP is ready to ditch the job if a better opportunity comes along the employer probably knows that. How much should they invest in you in this instance?
@eyemamom but do they know that? I did a year long rotational program and have already been in the current rotation for 6 months that is now becoming a full time position. I just find it odd that they’d just expect me to leave
@citywanderer … That’s how almost every company works as far as health insurance benefits. You are given the option to enroll and then you pay bi-weekly and it eats into your salary a bit.
The cost is usually much lower than what you would find on the health insurance exchange though. It is a RARE company that “gives” you benefits with no cost. Over the years ours have ranged from $350 every two weeks to only $100 every two weeks which is a STEAL for a family of three.
Usually you are given a “menu” of plans to choose from with some having a lower bi weekly premium but higher deductible and one that is cheaper every paycheck but has a lower deductible.
You need to really study those benefits. The fact they are available means you are being offered benefits. They are rarely, if ever, free.