Estimating hours for part time pilots

[Pixie]

I have a client with several seasonal pilots. The client tracks 'pilot days'.

"Their daily wage is based on a 14 hour duty day as that is the maximum number of hours they can be on site. If they work 4 hours and we cancel flights due to weather, they are paid a full days wage. Sometimes, they will be here 8-10 hours and other times 14 hours."

What would you use to estimate hours? My client was thinking that 10 hours per pilot day sounds fair but I was wondering if there was some guidance I could follow.

Thank you!

[401king]

Our documents have a rule in place on calculating hours worked when exact hours are not ready. You may need to refer to that section of your document. For instance, in ours we credit 190 hours for any month that an employee worked at least 1 hour. You may have Days Worked, where you credit 12 hours for any day that any employee worked at least 1 hour.

I think the point is to refer to your Adoption Agreement, and it is probably answered in there.

[BG5150]

Or, absent guidance in your document, you make the best estimate you can, document it, and be consistent from year to year.

[Guest A_Dude]

If they are paid for 14hr days regardless of the time they worked, then shouldn't they be credited with 14 hrs each day regardless if they are there or not? Does their payroll apply an hourly formula to pay them, or is it calculated X amount of $$ times days worked?

I.e. I am a salaried employee and paid for 40hrs a week, regardless if I work more or less. For plan purposes, I am credited with 40hrs regardless too since my actual hours are not tracked.

[QDROphile]

It is complicated and risky to use a number of hours other than based on the ERISA conventions if actual hours are not recorded and counted. In any event, the plan docment needs to specify how hours are counted. Standard payroll conventions are not appropriate.