Overtime Question

Betzi

I just want to make sure I am correct before addessing a staff person doing payroll - If someone works 8 hrs. Mon, Tues, Wed. & 9 hrs. Thurs. & takes a vacation day Friday (usually given in 6 hr. increments), he would not get 1 hr. overtime - correct? He would only use 7 hrs. of his vacation time & have an extra hour to use later. Simply, I guess I am asking if we must pay OT if vacation or sick time is used during that week to increase hours over 40.

Thank You!

Rockie

Most employers don't include vacation time as "hours worked" for the purpose of calculating overtime. Most states dictate that you pay overtime for hours "worked" over 40 in the workweek.

However, some states require that you pay overtime per day (over 8 hours worked in the day). I believe California is one of these, but I'm not sure what the others are.

Hope this helps.

marc

Nevada requires daily overtime pay if the rate of pay is below $7.73 per hour, otherwise it is the 40 hours in a pay week rule.

MB1004

He would not get overtime because it is hours worked and vacation/sick/holiday are not hours worked. If you have a policy that vacation can only be taken in certain hour increments, then you need to do that. Otherwise, yes, just give him the 7 and call it good.

NADUR

I realize this topic was discussed quite a while ago, but I had a similar question and found this out there. Let me clarify this. An employee takes a vacation day (8 hours) on Monday, works 8 hours each day Tuesday through Friday and works 3 hours on Saturday for a total of 43 hours on her time sheet. I would pay her for 43 hours but all would be a straight time and none at time-and-a-half due to the fact that vacation time made up part of those hours?

mushroomHR

Our company counts PTO as time worked and would pay overtime if an employee worked (in one week) three 8-hour days, took one vacation day, and worked a 10-hour day for a total of 42 hours. 40 reg plus 2 OT. I've tried to get them to change that practice but management won't budge on the issue.

POPEYE

As Mushroom said in the post below, it depends on what your policy reads. We also unfortunately count vacation time as hours worked when calculating OT, but you do not have to.

NADUR

Our policy doesn't really address this issue when it comes to paying overtime. Or at least it's not very clear. Maybe that's something we need to revise so there are no misunderstandings.

E Wart

If you don't have a policy, I would say you would go by the federal and state laws. However, it is good to have your policy in writing on this in case questions.
E Wart

Dutch2

We pay OT for productive time only. Any other "paid time" such as sick, vacation, etc. that may be paid during the work week do not count as productive time and therefore are not included in the count towards the 40 hours.

atrimble

Can I throw a confusion wrench into the responses? We pay Holidays as if it were time worked, but sick and vacation time are no-work times. So our payroll clerk has lots of fun...

mwild3136

Hi Betzi. At my last company, we paid OT when sick was used. At my new company, we pay OT for holidays. As others have said, it really just depends upon your policy. The good news here in WA state is that the employer sets the rules/policies, not the state. So, if your employer wants to change things, they certainly can.