Employers must pay employees for all the time worked in a workday. “Workday,” in general, means all the hours between the time an employee begins work and ends work on a particular day. Sometimes, the workday extends beyond a worker’s scheduled shift or normal hours. When this happens, the employer is responsible for paying the employee for that extra time. The following are examples of worktime outside an employee’s normal shift:
Depending on the nature of the travel, the nature of the employee’s work and the connection between the two, an employee’s drive and travel time may need to be included in the total hours worked for the week for the purposes of calculating overtime. According to federal guidelines, employees are “working” in the following travel scenarios:
To help with the expense of overtime, some employers choose to pay drive/travel time at a lower rate than the employee’s regular pay rate. When using two different pay rates in a week in which an employee worked overtime, the regular rate is a “blended rate” or “weighted average” of the two rates.
Training. When it comes to mandatory training or meetings, employers have to pay non-exempt employees all hours they spend attending any type of required programs.
Wait-time. Depending on the industry, some employees have to wait to receive their jobs for the day, wait in a security line, or wait at their place of employment to punch a time clock. Employers should pay employees for their wait time if the employer requires the activity; the activity is necessary for the employee to perform his or her duties; and the activity primarily benefits the employer.
Outside or After-Hours Work. Many employers who expect or require their employees to check email or take calls outside of the office may not realize that they have to pay their employees for that time. Make sure your employees track this type of time with a log so you can pay them appropriately. If you choose to forbid outside or after-hours work, make sure to have a clear policy stating that. Either way, you must pay the employee, but you may also then be able to discipline him or her for violating the policy.
Employers must use caution when evaluating whether they comply with overtime requirements. Many states have laws that don’t always mirror the Fair Labor Standards Act (FLSA) overtime rules. Employers must be certain they comply with the FLSA and state-law requirements in every state where they have employees and calculate overtime appropriately based on those laws.
If you have specific questions on calculating employee pay and overtime or are interested in ways that FrankCrum can help you with HR and wage and hour issues you’re currently facing, please contact us. We’re here for you!