Was not sure where to post this question but I am really hoping for advice because I know many of you wise people will GE able to help me. I am being reviewed for a raise and was asked if I would consider a deal where I could get paid a set amount of OT hours per week and not be bound to work them. I am trying to weigh they pros and cons of this. If I were to apply for a loan down the road and I consistently earned this... Say $300 extra a week .... Would they figure this $$$ into my income figure? Any input/advice would be greatly appreciated. Thanks a lot.

The OT scenario actually was brought up by me to them...not necessarily that I wanted that instead of the base pay raise....it complicated..but anyway...I need to decide whether I want the OT(more money)..or base pay raise.

Thanks.

Would they figure this $$$ into my income figure?

Would you want to have a loan that required you to have that income?
(I wouldn't)

But - assuming you do - the best place to ask this question I think is on the "Buying or Selling a Home" board
http://boards.fool.com/Messages.asp?mid=30186001&bid=100...

I'm guessing that if you can show that you made $X last year, and claim that as your income (and your pay stubs are close enough) the lenders/underwriters will accept your statement that you're making $X.

I need to decide whether I want the OT(more money)..or base pay raise.
I'd be more concerned about other things that might be dependent on your base pay.
1> life insurance
2> 401k contributions
3> bonuses
4> any other benefits that might be based on your base pay.

And what will you get for pay when you're out for a week on vacation?

Thanks for the reply. What I meant is because it is or may be OT tat I'm working ... When a applying for a loan and I am asked how much a year do you make would I factor in the OT? I get paid 52 weeks a year...even vacation weeks.. Obviously. :)

Thanks...

If I were to apply for a loan down the road and I consistently earned this... Say $300 extra a week .... Would they figure this $$$ into my income figure?

It depends on the loan that you are applying for. For a mortgage, you will probably have to have 1 - 2 years of documented consistent OT. For other credit cards or car loans, requirements to document the income are not likely to be as stringent.

The OT scenario actually was brought up by me to them...not necessarily that I wanted that instead of the base pay raise....it complicated..but anyway...I need to decide whether I want the OT(more money)..or base pay raise.

First of all, I'd be worried about the integrity of any manager that suggested that scheme to me. While they may be trying to figure out a way to get you a raise that wouldn't otherwise be approved by the higher-ups, that's going outside company policy, at least, if this is the case.

Plus, what happens when the management chain that suggested this no longer works in that position - will the new management chain live up to the deal? Even beyond that, are you already working OT and getting paid for it? If so, your raise will not be as much in any week that you do work some of the OT hours. Additionally, as already pointed out, other extras that may be based on your base pay, rather than total pay, like life insurance coverage, 401(k) match, pension, etc. will not increase if you get OT added.

AJ

Plus, what happens when the management chain that suggested this no longer works in that position - will the new management chain live up to the deal?


that's what would scare me:

NewBoss: I see you put OT on your time card.
I didnt ask you to work OT

horse: I know had this deal with OldBoss

NB: not any more. in fact, I may have to ask you
to return that extra pay

I am being reviewed for a raise and was asked if I would consider a deal where I could get paid a set amount of OT hours per week and not be bound to work them

I'm with the skeptics. This scheme doesn't make any sense from an honest employer's standpoint. Are you FLSA-exempt? If not, there are laws about how much they have to pay you for overtime.

From your standpoint I would assume that my work week is being expanded to include the set hours of OT.

Same cautions as already mentioned regarding things calculated from base pay.

Phil
Rule Your Retirement Home Fool

Are you in a position where they are billing a customer for your hours or some sort of cost pluss contract?


If so then that is a problem.

Same cautions as already mentioned regarding things calculated from base pay.

Oh, yeah - one more thing that's calculated from base pay that hasn't been mentioned....

Future raises.

And what happens when the next raise comes around? Will the OT remain in place? Or will the 'raise' just replace the OT, so it's not really a raise at all, and may actually be a decrease?

AJ