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It’s only a matter of overtime

lisahein — Wed, 15 Apr 2015 19:26:01 +0000

Have your employees been going the extra mile lately? What if they’re clocking in the equivalent of a marathon in hours? If you’re looking over your timesheets and notice that your star employee racked up a whopping 55 hours last week, it’s time to get familiar with the legal requirements of overtime pay. You’re going to need to calculate overtime whether or not the hours your employee worked were authorized by management.

(Note: information in this article is applicable to hourly, non-exempt employees. For a more in-depth analysis of overtime pay, including regular rate of pay and exempt employees, check out the newly updated Wages and Hours – An Employer’s Guide.)

What are the federal requirements for overtime pay?

The Fair Labor Standards Act (FLSA) requires that covered employers pay non-exempt employees for overtime at a rate of at least one and one-half times the employee’s regular wage rate for hours worked in excess of 40 hours in one workweek.

Overtime must be computed for each workweek – i.e., if an employee works 30 hours one week and 50 the next, the employer must pay the employee overtime compensation for 10 hours for the second week.

Do I need to pay overtime for hours not worked?

Hours that are paid but not worked do not have to be counted as hours worked under the FLSA, but you are free to treat them as hours worked either by agreement or as a matter of practice.

Examples include:

holidays
vacations
sick days
absences due to:
- voting
- jury service
- reporting to a draft board
- attending a family member’s funeral
- inability to reach work due to inclement weather.

What should I include when calculating the regular rate of pay for my employees?

The overtime pay rate is one and one-half times the employee’s regular rate. All compensation must be included in computing an employee’s regular rate unless specifically excluded by the FLSA. The FLSA excludes the following payments from the regular rate computation:

discretionary bonuses
prizes
gifts
expense reimbursements
benefit plan contributions (generally do not include cafeteria plans that include a cash option)
radio and television talent fees which satisfy government regulations
some stock options, including those exercised by non-exempt employees
premium payments for overtime work.

An employee’s regular rate is calculated by dividing the employee’s total weekly compensation by the total hours worked during the workweek. Regular rate for overtime compensation purposes must include:

on-call pay
shift differential
weekend differential
longevity pay
commission payments
payments for sold-back benefits (such as vacation or sick pay if the sale is during employment rather than a terminal benefit)
safety, incentive, productivity, attendance, and merit bonuses.

What if my state has overtime requirements that differ from the FLSA?

State laws can have different requirements for overtime pay. As a result, you will want to check your state’s law and ensure that you are following the law that is most friendly to employees. In general, the rate of pay for overtime hours must be at least one and one-half times the employee’s regular rate of pay.

The following chart contains information regarding state laws for overtime. This chart contains only the general overtime provisions. Situations where provisions may differ include small employers, employers of minors, employers in particular industries, and public sector employers. Additionally, the chart generally does not address exemptions from state law overtime requirements. You should not rely solely on this chart and should be sure to familiarize yourself thoroughly with the law of your state.

Keep in mind that the law that is the most favorable to employees, whether federal or state, is the law that must be followed.

State overtime pay requirements chart

State	Overtime
Alabama	No provision.
Alaska	Overtime/premium pay at the rate of 1½ times the regular rate of pay is required for all hours worked over 8 hours in a workday or 40 hours in a workweek (although in calculating the hours worked per week, any hours over 8 in a day are not counted as they would be compensated separately for those hours).
Arizona	No provision.
Arkansas	Overtime/premium pay at the rate of 1½ times the regular rate of pay is required for all hours worked over 40 hours in a workweek.
California	Overtime/premium pay at the rate of 1½ times the regular rate of pay is required for all hours worked over 8 hours per day or 40 hours per week. All hours worked over 12 hours per day must be compensated at double the regular rate of pay. All hours worked after the 7^th consecutive day of work must be compensated at 1½ times the regular rate of pay for the first 7 hours and at double the regular rate of pay for 8 or more hours.
Colorado	Overtime/premium pay at the rate of 1½ times the regular rate of pay is required for all hours worked in excess of 40 hours per workweek, 12 hours per workday, or 12 consecutive hours without regard to the starting or ending time of the workday (excluding meal breaks free from duty), whichever gives the employee the greater amount of wages.
Connecticut	Overtime/premium pay at the rate of 1½ times the regular rate of pay is required for all hours worked after 40 hours in a workweek.
Delaware	No provision.
District of Columbia	Overtime/premium pay at the rate of 1½ times the regular rate of pay is required for all hours worked over 40 hours in a workweek.
Florida	No provision.
Georgia	No provision.
Guam	Overtime/premium pay at the rate of 1½ times the regular rate of pay is required for all hours worked over 40 hours in a workweek.
Hawaii	Overtime/premium pay at the rate of 1½ times the regular rate of pay is required for all hours worked over 40 hours in a workweek.
Idaho	No provision.
Illinois	Overtime/premium pay at the rate of 1½ times the regular rate of pay is required for all hours worked over 40 hours in a workweek.
Indiana	Overtime/premium pay at the rate of 1½ times the regular rate of pay is required for all hours worked over 40 hours in a workweek.
Iowa	No provision.
Kansas	Overtime/premium pay at the rate of 1½ times the regular rate of pay is required for all hours worked over 46 hours in a workweek by employees who are not subject to the FLSA’s overtime requirements.
Kentucky	Overtime/premium pay at the rate of 1½ times the regular rate of pay is required for all hours worked over 40 hours in a workweek and, if the employee has worked all 7 days in a workweek, for all hours worked on the 7^th day.
Louisiana	No provision.
Maine	Overtime/premium pay at the rate of 1½ times the regular rate of pay is required for all hours worked over 40 hours in a workweek. Employees may not be required to work more than 80 hours of overtime in any consecutive two-week period.
Maryland	Overtime/premium pay at the rate of 1½ times the regular rate of pay is required for all hours worked over 40 hours in a workweek.
Massachusetts	Overtime/premium pay at the rate of 1½ times the regular rate of pay is required for all hours worked over 40 hours in a workweek. In addition, retailers that employ more than 7 people must pay employees premium pay at the rate of 1½ times the regular rate of pay for all hours worked on Sundays and certain holidays; employees cannot be forced to work on these days.
Michigan	Overtime/premium pay at the rate of 1½ times the regular rate of pay is required for all hours worked over 40 hours in a workweek.
Minnesota	Overtime/premium pay at the rate of 1½ times the regular rate of pay is required for all hours worked over 48 hours in a workweek.
Mississippi	No provision.
Missouri	Overtime/premium pay at the rate of 1½ times the regular rate of pay is required for all hours worked over 40 hours in a workweek by employees who are considered non-exempt under the FLSA.
Montana	Overtime/premium pay at the rate of 1½ times the regular rate of pay is required for all hours worked over 40 hours in a workweek.
Nebraska	No provision.
Nevada	Overtime/premium pay at the rate of 1½ times the regular rate of pay is required for all hours worked over 8 hours in a workday for employees whose regular rate is less than 1½ times minimum wage, and required for all hours worked over 40 hours in a workweek for all employees, unless the employee agrees to work 4 10-hour shifts per week.
New Hampshire	Overtime/premium pay at the rate of 1½ times the regular rate of pay is required for all hours worked over 40 hours in a workweek.
New Jersey	Overtime/premium pay at the rate of 1½ times the regular rate of pay is required for all hours worked over 40 hours in a workweek.
New Mexico	Overtime/premium pay at the rate of 1½ times the regular rate of pay is required for all hours worked over 40 hours in a workweek.
New York	Overtime/premium pay at the rate of 1½ times the regular rate of pay is required for all hours worked over 40 hours in a workweek.
North Carolina	Overtime/premium pay at the rate of 1½ times the regular rate of pay is required for all hours worked over 40 hours in a workweek.
North Dakota	Overtime/premium pay at the rate of 1½ times the regular rate of pay is required for all hours worked over 40 hours in a workweek.
Ohio	Overtime/premium pay at the rate of 1½ times the regular rate of pay is required for all hours worked over 40 hours in a workweek.
Oklahoma	No provision.
Oregon	Overtime/premium pay at the rate of 1½ times the regular rate of pay is required for all hours worked over 40 hours in a workweek.
Pennsylvania	Overtime/premium pay at the rate of 1½ times the regular rate of pay is required for all hours worked over 40 hours in a workweek.
Puerto Rico	Employers covered by the FLSA must pay non-exempt employees overtime/premium pay at the rate of 1½ times the regular rate of pay for all hours worked over 40 hours in a workweek or 8 hours in a workday. Employers not covered by the FLSA must pay an overtime rate of 2 times the regular rate for all hours worked over 40 hours in a workweek or 8 hours in a workday.
Rhode Island	Overtime/premium pay at the rate of 1½ times the regular rate of pay is required for all hours worked over 40 hours in a workweek
South Carolina	No provision.
South Dakota	No provision.
Tennessee	No provision.
Texas	No provision.
Utah	No provision.
Vermont	Overtime/premium pay at the rate of 1½ times the regular rate of pay is required for all hours worked over 40 hours in a workweek.
Virgin Islands	Overtime/premium pay at the rate of 1½ times the regular rate of pay is required for all hours worked over 40 hours in a workweek or 8 hours in a workday, and for any hours worked on the 6^th and/or 7^th consecutive day of a workweek, whichever excess is calculated to give the employee the greatest compensation.
Virginia	No provision.
Washington	Overtime/premium pay at the rate of 1½ times the regular rate of pay is required for all hours worked over 40 hours in a workweek
West Virginia	Overtime/premium pay at the rate of 1½ times the regular rate of pay is required for all hours worked over 40 hours in a workweek.
Wisconsin	Overtime/premium pay at the rate of 1½ times the regular rate of pay is required for all hours worked over 40 hours in a workweek.
Wyoming	No provision.

The chart above was taken from our topic-specific resource, Wages and Hours – An Employer’s Guide. Authored by Jill S. Kirila and Meghan Hill of Squire Patton Boggs, Wages and Hours is an indispensable guide that helps ensure you are classifying and paying your employees correctly. Click here to purchase your own copy today!

Looking for more information about overtime laws in your state? Click here to see what we have available for you in our state-specific resources!

Minimum wages for 2015

shannon — Wed, 03 Dec 2014 04:43:26 +0000

Federal: $7.25
- Federal contractors: $10.10
Alabama: $7.25
Alaska: $8.75
Arizona: $8.05
Arkansas: $7.50
California: $9.00
- San Diego: $9.75
- San Francisco: $11.05 ($12.25 effective May 2015)
Colorado: $8.23
Connecticut: $9.15
Delaware: $8.25 (effective June 2015)
District of Columbia: $10.50 (effective July 2015)
Florida: $8.05
Georgia: $7.25
Hawaii: $7.75
Idaho: $7.25
Illinois: $8.25
- Chicago: $10.00 (effective July 2015)
Indiana: $7.25
Iowa: $7.25
Kansas: $7.25
Kentucky: $7.25
Louisiana: $7.25
Maine: $7.50
Maryland: $8.00 ($8.25 effective July 2015)
Massachusetts: $9.00
Michigan: $8.15
Minnesota: $8.00/$6.50 for large/small employers ($9.00/$7.25 effective August 2015)
Mississippi: $7.25
Missouri: $7.65
Montana: $8.05
Nebraska: $8.00
Nevada: $7.25 ($8.25 for employees without health benefits)
New Hampshire: $7.25
New Jersey: $8.38
New Mexico: $7.50
- Albuquerque: $8.75
New York: $8.75
North Carolina: $7.25
North Dakota: $7.25
Ohio: $8.10
Oklahoma: $7.25
Oregon: $9.25
Pennsylvania: $7.25
Puerto Rico: $7.25
Rhode Island: $9.00
South Carolina: $7.25
South Dakota: $8.50
Tennessee: $7.25
Texas: $7.25
Utah: $7.25
Vermont: $9.15
Virginia: $7.25
Washington: $9.47
- Seattle: $10.00 or $11.00 (contingent on employer size)
West Virginia: $8.00 ($8.75 effective December 31, 2015)
Wisconsin: $7.25
Wyoming: $7.25

Attendance policies

shannon — Thu, 03 Jul 2014 19:19:09 +0000

Needless to say, a company can’t operate (let alone succeed) if the employees aren’t showing up to work. But how do you ensure that your workforce will consistently report for duty? One good step is having a clear attendance policy. Communicating clearly about what are acceptable reasons to miss work, how these requests should be made, and what does not qualify as an excusable absence can prevent a lot of confusion and make employees more accountable. The key to communicating these guidelines is a well-written and enforced “No-Fault Attendance” policy. This kind of policy may even boost employee morale by minimizing resentment on the part of some employees toward coworkers who suffer no consequences for being chronically absent.

Here is a deeper look at what such a policy should cover.

General tone

An attendance policy should be strict enough to allow the employer to discipline those employees whose absences cause problems, yet flexible enough that the employer does not have to terminate good employees who are absent infrequently.

Multiple policies

It is also acceptable to have different policies for different departments, as the needs for the staff to be present on a daily basis and shift lengths may differ.

Morale

Rewarding employees for good attendance is good for employee morale and ultimately may improve overall attendance.

Interaction with unemployment compensation

A reasonable and enforced policy is a good defense against unemployment compensation claims if an employer can prove that the employee failed to abide by the published attendance policy. Such a policy is a good defense to an unemployment compensation claim by an employee terminated for excessive absenteeism as it allows the employer to show that the employee violated the uniformly enforced policy and was discharged for doing so. Again, to be effective, the policy must be reasonable, uniformly enforced, and in writing.

Disabilities and attendance

In addition, a well-written and uniformly enforced attendance policy may avoid liability under the ADA to job applicants or employees whose disabilities prevent regular and consistent attendance. The employer’s reasonable attendance standards may be deemed an essential function of the job, which may not have to be relaxed as part of a reasonable accommodation if attendance is required to perform the position and the attendance standards are spelled out in advance and uniformly and consistently applied.

Family and medical leave absences

The Family and Medical Leave Act (FMLA) has made enforcing absentee policies more difficult for larger employers by prohibiting covered employers from disciplining or discharging an eligible employee for an absence caused by a protected reason, including a serious health condition of the employee or a member of his or her family. The FMLA does impose certain requirements upon employees with respect to eligibility for leave – including notice to the employer and medical certification, and employers should be mindful of enforcing attendance policies in situations that involve FMLA leave.

Below is an example of an attendance policy that uses a point system for employee absences that you can customize to fit your needs.

Sample attendance policy

You are hired to perform an important function at ABC Company. As with any group effort, it takes cooperation and commitment from everyone to operate effectively.

Therefore, your attendance and punctuality are very important. Absences cause a slow-down in the work and added burdens for your fellow employees. Good attendance is something that is expected from all employees. You should be at your work station by the start of each workday at the time designated by the department. Excessive absenteeism or tardiness will not be tolerated and will be cause for disciplinary action up to and including discharge.

We do realize, however, that there are times when absences and tardiness cannot be avoided. This is why we have a no-fault system that allows you to accumulate some points before any disciplinary action will be taken against you. It is expected that everyone will accumulate some points under this system. It is only when points become excessive, and warnings are issued, that an employee need be concerned about his or her attendance practices.

Regardless of the reason for your absence, you are expected to properly notify your supervisor on duty at least one hour in advance of your scheduled work time. Leaving a message does not qualify as notifying your supervisor. You must personally contact your supervisor. Lack of a telephone or absence from town is not an excuse for failing to notify your supervisor of absence or tardiness. You should call every day that you are absent unless you are on an approved leave of absence. Unreported and unexcused absences of two consecutive work days will be considered a voluntary resignation of employment with the Company.

Each employee’s absenteeism and tardiness records are kept on file with the Human Resources Department. The absenteeism and tardiness records are kept on a point system basis. Depending upon the nature of the absence, a certain number of points are accumulated by an employee on his or her absence record. When an employee reaches various point totals, certain notice and disciplinary actions will be taken. An employee may receive a written notice, a written warning, a final written warning, or may be discharged depending upon the number of points he or she accumulates.

The point system is based upon the progressive past 12 calendar months. Any employee who accumulates 24 or more points in a 12 calendar month period under this system will be discharged. On the first day of each calendar month, points accumulated during that same month one year prior will be removed from the employee’s record for purposes of this policy.

If an employee accumulates only three points or less during any progressive 12 calendar month period, he or she will receive one day off with pay. Upon earning a day off with pay, the employee will begin a new 12-month period for purposes of earning another day off under this program. Absences from work will accumulate points in the following manner:

If your absence is due to illness or injury, you may be required to provide a doctor’s report supporting the necessity of your absence, as well as your ability to return to your work, within 15 calendar days after the absence or tardiness. If your absence is the result of personal emergency other than illness or injury, documentation supporting your absence may be required.

No Points

1. Off work due to a work-related injury with medical verification that the employee is unable to work.

2. Off work due to jury duty, military leave, medical leave, FMLA leave, lack of work, subpoenas, or any other absence expressly authorized by the Company, the terms of Company policy, or the law.

3. Off work because of adverse weather conditions resulting in the closing of schools and/or roads in this or the surrounding counties by the local authorities.

4. Off work due to an accident in which you are involved coming to work and which you can verify through police records or other satisfactory evidence. Car trouble is not excused.

One-half (1/2) Point

1. Leaving work early because of a proven emergency.

One (1) Point

1. Late to work by 18 minutes or less for any reason not excused above.

2. Leaving work two hours or less before the end of your scheduled work time for any reason not excused above after notifying your supervisor.

Two (2) Points

1. Late to work by more than 18 minutes for any reason not excused above.

2. Leaving work more than two hours before the end of your scheduled workweek for any reason not excused above after notifying your supervisor.

Three (3) Points

1. Absence for any reason not excused above with proper call-in.

Twelve (12) Points

1. Absence for any reason not excused above without proper call-in.

The accumulation of the following number of points will result in the following action being taken by the Company:

• 12 Points: A written notice that the employee has accumulated 12 or more points.

• 16 Points: A written warning to the employee.

• 20 Points: A final written warning to the employee.

• 24 Points: The employee will be discharged.

EXAMPLE:

Employee is late on one occasion by 30 minutes, leaves work 1 hour early on another occasion, and has three properly reported absences that are not excused.

2 points + 1 point + 9 points = 12 points = Written Notice

The Company will not notify the employees that through the passage of time they have lost points. However, each time an employee accumulates enough points to trigger a notice or warning, the employee will receive such notice or warning. For example, if an employee accumulates 12 points and receives a written notice of such points and then subsequently drops, through the passage of time, to 10 points, the employee will be reissued a written notice again upon the re-accumulation of 12 points. Employees also may check with the Human Resources Department at any time to determine their point status.

The Company also reserves the right to impose discipline, up to and including discharge, for excessive excused absences or tardiness.

Need more policies and forms? Our Model Employee Policies and Forms for Employers are packed with hundreds of downloadable policies and forms. You can also sign up for HR Update, our newsletter that will let you know what’s new in the HR world every week. Click here to sign up.

Breaktimes

shannon — Mon, 30 Jun 2014 19:51:30 +0000

Meal breaks and rest breaks continue to be some of the biggest grey areas in employment. Whether its understanding how much time needs to be provided, what limitations an employer can place on the employee during that time, or timekeeping issues, break time can be a very confusing topic. Here are a few things to keep in mind when dealing with employee breaks.

The basics
Employers covered by the Fair Labor Standards Act (FLSA) should pay employees for all breaks and meal periods under 30 minutes or for any meals when the employee is not completely relieved of his duties.

While this seems very straightforward there are often situations in which employee breaks are interrupted and thus should be paid.

Example:
An employee is given an hour meal period and is permitted to leave the premises, but the employee regularly is required to answer his cell phone to field work-related questions during lunch. The time spent answering/talking on the cell phone is work time. Further, if the phone calls are frequent enough to not give the employee an uninterrupted break, the employer will have to compensate the employee for the entire meal period.

Scheduling the break
Another issue with break times is knowing at what point they are required. About half of the states have laws requiring breaks at certain hour thresholds, for example after five consecutive hours of work. Check your state’s requirement here.

Where the break is taken
One misconception is that if the employee is not allowed to leave the premises the break must be paid. For safety reasons, some employers prohibit staff from coming and going from the office during shifts. As long as the employee is fully relieved of their duties, these breaks do not be to be paid.

Day-long breaks from work

Some states also have laws requiring rest days after employees have worked a certain number of days. Check with your state’s department of labor for more information.

Meal and break time policies

As with all employment law topics, the best way to stay out of trouble is to have a clear policy in place and to enforce it evenly. Below is an example of an hours of work policy you can customize to fit your needs.

Hours of Work policy

Workweek

The workweek is Monday through Sunday. Day (first) shift is from 7:00 a.m. to 3:00 p.m. Evening (second) shift is from 3:00 p.m. to 11:00 p.m. Night (third) shift is from 11:00 p.m. to 7:00 a.m.

Wash-up Periods

A non-exempt employee will receive a paid wash-up period of five minutes immediately before his or her lunch and a paid washup period of five minutes immediately before the end of his or her shift.

Break Periods

A non-exempt employee will receive a paid break period of 10 minutes in the first four hours of a shift lasting at least four hours and a paid break period of 10 minutes in the second four hours of a shift lasting at least eight hours. The Company will continue its practice of offering an unpaid supper period when extended overtime is worked into late evening hours.

Meal Periods

A non-exempt employee will receive an unpaid meal period of 30 minutes during a shift lasting more than four hours. The timing of the meal period for each employee shall be solely at the discretion of the employee’s supervisor. No work may be performed during the meal period. If you do perform work during a meal period, you must inform your supervisor immediately, and your timecard must reflect that you worked during the meal period.

For more information on breaks, meal times, and wage and hour issues, click here to subscribe to Wages and Hours – An Employer's Guide for $49.