See this from Department of Labor (DOL)
When an employee must correct mistakes in his or her work, the time must be treated as hours worked. The correction of errors, or "rework", is hours worked, even when the employee voluntarily does the rework.
It is a do not ... I originally pulled the information from a legal handbook (not authoritative, or rule of law, andit looked as if it were ok) ... But in going to DOL itself, they state definitively that re-work is hours worked...
That is correct
See this: http://webapps.dol.gov/elaws/whd/flsa/hoursworked/screen1d.asp
I would not go there without including it in the job description and getting them do sign/agree before taking the job ... let me look at the FSLA regs and see if they address...
OK, my intuition was good
From DOL, Wage and Hour Division
Paying a commensurate wage (a % of the prevailing wage for the same work) requires that the employer accurately define both the minimal acceptable quantity standard (amount of work/time) and the minimal acceptable quality standard before workers are evaluated.
These standards must be predetermined, written, and clearly articulated to the workers before the necessary time studies to SET these standards are conducted.
Examples of quality standards for hourly paid jobs could include such things as the number of streaks left on a mirror or window to be cleaned by a janitor, or the number of pieces of mail that were incorrectly sorted by a mail room attendant; or how many "patches" of uncut grass remain on a lawn being mowed by a landscape worker.
Determine the "standard" for the job - which reflects the productivity, in terms of quality and quantity, of an experienced worker
Does the Department of Labor require the use of any particular work measurement method when evaluating productivity levels? No, but the work measurement method must be verifiable through the use of established industrial work measurement techniques.
For example, Wage and Hour accepts such methods as stopwatch time studies, Methods-Time Measurement (MTM) and Modular Arrangement of Predetermined Time Standards (MODAPTS). Whatever work measurement method is used, neither the standard setter nor the worker may be evaluated before having the opportunity to become familiar with the job or at a time when the worker is fatigued or subject to conditions that result in less than normal productivity.
It is recommended that at least three different workers who do not have disabilities for the work being performed be evaluated and that their individual productivity ratings be averaged to determine the standard. Such averaging, although not required by the Regulations, 29 CFR Part 525, takes into consideration that even experienced workers work at different paces.
Where we see re-work referenced most is in setting a COMMENSURATE wage for the person with a disability.
This calculator may give you a way to determine a factor, a %, for regular work vs the time lost through re-work (again, used to set commensurate wage for a person with a disability, but could be a fairly standardized way for you to determine the percentage based on lower productivity.
But again, unless this is all codified (say in a job description) and signed and agreed to by the employee before accepting the job, you are risking FSLA fines/sanctions.
Likely, the administrative overhead required here - and the potential that the employee has a cause of action under the GENERAL RILE (re-work time is paid time) - this may not be cost effective
However, doing this kind of up-front,(and then documenting/evaluating workers AGAINST those standards) could allow both for the ability to pay a commensurate wage (again, if part of an accepted employment contract) AND set standards that may help productivity generally, communicate expectations (thereby pre-empting the need FOR re-work) and make hiring, firing and evaluating at will employees a less risky proposition.
If you have not already done this standard setting work, and developed the pre-employment application/contract and had employees sign as accepting, you would fall under the general rule, re-work is time worked and paid.
Hope this has helped
To stand up to DOL scrutiny you'd need to (1) do the actual standardized time and motion studies to set the standards (2) codify that in the job description/handbook (3) evaluate periodically and provide the necessary feedback (1st 2nd 3rd pink slip type of practice) and this can work ... I would have an HR consultant help you set it up
You must do the time and motion study to really determine that productivity was truly cut in half
You can't just disassociate this from productivity ... and this CANNOT be advertised (even perceived) as punitive.
It must tie to productivity, in order logically to tie to your reduced profit
Further, you cannot simply put this into effect for an employee who wasn't hired UNDER that condition of employment AND accepted the job based on that criteria
Listen, I have an 11:30 meeting ... when I get back to the desk here, I'll see if I an find something that will give you a model.
But just remember that the task at hand here is to show that (1) you've only reduced in a way that offsets your damage to profits (productivity is the only way you can do that) (2) It MUST be accepted as a condition of the job ... a good document would have a place for the new employee to sign not only at the bottom, but where they specific condition is address in the document as well, as an acknowledgement ("I acknowledge that ...") (3) you are essentiall making a case here that if employee complains... you haver accomplised what's needed to be exempt from the general rile
Cost is a part OF productivity ... Productivity means output (of acceptable quality)/time
This is a little simplified but...
So you must look at, say, 100 widgets being produced in 1 day under normal circumstances with a trained employee out of the training period
vs 80 being produced because the time needed to re-work took you down to only 80 acceptable widgets being produced in the same amount of time
OR you can turn it around and look at the amount of time taken to produce 100 widgets vs the time taken to produce 100 (with re-work time included) so say that now (with re-work included)... it took 10 hours rather than 8 ...... pay could be reduced proportionately 8/10 = 80% of regular pay
Depending on your process, you can get this down to a per piece number to apply, based on the number pieces needed to be re-worked ... But it HAS to be commensurate with your true extra cost over time, which is productivity, which can be related directly to lowered profit
Gotta go, but I'll see what I can find
And again just remember DOL will start with the assumption that re-work time is paid time .. you have to build a system that logically shows you are fairly accommodating in a way that keeps your net profit where it would be if the re-work wasn't and using this as a training opportunity, rather that punishment
If this HAS helped, and you don't have additional questions on this, I'd appreciate a positive rating (by clicking the stars or smiley faces on your screen) ... that's the only way I'll be credited for the work here....
See this, from http://webapps.dol.gov/dolfaq/go-dol-faq.asp?faqid=359
Question: How do I determine "commensurate wage rates"?
Answer: A commensurate wage rate is a special minimum wage paid to a worker with a disability which is based on the worker's individual productivity, no matter how limited, in proportion to the wage and productivity of experienced nondisabled workers performing essentially the same type, quality, and quantity of work in the geographic area from which the labor force of the community is drawn. An example of a commensurate wage rate would be as follows:
As I mentioned before this is the methodology for establishing a commensurate wage rate for someone with a disability who CANNOT produce at the same pace (hence lower productivity, hence more cost over the same time, hence lower profit for a given period)
Again, I would advise you to read the second section here: http://webapps.dol.gov/elaws/whd/flsa/hoursworked/screen1d.asp under the header "RE-WORK."