How does the employer compute overtime in a week with a holiday? With vacation?
August 11, 2008
Assuming there is no provision of a collective-bargaining agreement which provides otherwise, overtime need not be paid until the employee's actual "hours worked" in the week exceed 40. Thus, an employee who is paid for 8 hours of holiday or vacation pay and works the remainder of the week (32 hours) is not entitled to overtime pay if called in for eight additional hours on Saturday. The employee must, however, be paid the regular rate for the Saturday hours. A number of employers voluntarily pay overtime in this situation but are not required to do so under the Fair Labor Standards Act ("FLSA").
This information is adapted from Ceridian's HR Compliance Reference System. Contact your Ceridian representative for more information about Ceridian's compliance solutions.
Assuming there is no provision of a collective-bargaining agreement which provides otherwise, overtime need not be paid until the employee's actual "hours worked" in the week exceed 40. Thus, an employee who is paid for 8 hours of holiday or vacation pay and works the remainder of the week (32 hours) is not entitled to overtime pay if called in for eight additional hours on Saturday. The employee must, however, be paid the regular rate for the Saturday hours. A number of employers voluntarily pay overtime in this situation but are not required to do so under the Fair Labor Standards Act ("FLSA").
This information is adapted from Ceridian's HR Compliance Reference System. Contact your Ceridian representative for more information about Ceridian's compliance solutions.
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