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Work Hour Considerations


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If you employ nonexempt workers, knowing when you need to pay them for items including rest periods, meal times, training time and on-call time is not always clear. This presentations straightens out the gray areas for you.

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Work Hour Considerations

  1. 1. Work Hour Considerations Items to Consider When Calculating Work Hours
  2. 2. What is Compensable Time?
  3. 3. All Hours Worked by Nonexempt Employees is Compensable Time & Must Be Paid. A nonexempt employee is one protected by the Fair Labor Standards Act (FLSA), which specifies minimum wage, overtime rules and record-keeping requirements.
  4. 4. But What About… Meal Periods
  5. 5. But What About… Meal Periods Rest Periods
  6. 6. But What About… Meal Periods Rest Periods On-Call Time
  7. 7. But What About… Meal Periods Rest Periods On-Call Time Sleep Time
  8. 8. But What About… Meal Periods Rest Periods On-Call Time Sleep Time Waiting Time
  9. 9. But What About…? Meal Periods Rest Periods On-Call Time Sleep Time Waiting Time Meal & Training Time
  10. 10. Meal Time If an employee is relieved of all responsibilities during a meal period, then that time is not compensable.
  11. 11. Rest Periods Rest periods must be compensated. They are typically 20 minutes or less.
  12. 12. On-Call Time If an employee… Is required to be on the employer’s premises = must be paid. Simply needs to be available = not considered working. Has to carry a cell phone & stay within distance = generally not considered working.
  13. 13. If employees are on shifts less than 24 hours = must be paid for all time, even if sleeping, eating, etc. For shifts of 24 hours or more = sleep or meal periods of 8 hours may be excluded, if agreed upon. If sleep is interrupted by work = any work time is compensable. Sleep Time
  14. 14. Wait Time There are two circumstances for wait time: 1. “Engaged to be Waiting” 2. “Waiting to be Engaged”
  15. 15. Engaged to Be Waiting This means that an employee is required to wait for work to begin. This is compensable time. Example: A factory worker must wait 10 minutes while a piece of machinery is repaired.
  16. 16. Waiting to Be Engaged This is when a worker is freed from all duties for a definite length of time. This is not work time. Example: A shipment is running a day late, so a worker responsible for unloading the shipment doesn’t have to arrive until the next day.
  17. 17. Meeting & Training Time What You Need to Know: Generally, attendance at meetings, seminars and training classes are considered work time. However, there are exclusions…
  18. 18. Meeting & Training Time When is Meeting & Training Time Not Compensable? • When the event is not within normal working hours. • When it’s not related to the employee’s job. • When work isn’t being done while in attendance. • When it’s voluntary.
  19. 19. Looking for More Small Business Tips? Visit The Payroll Blog. Easy. Online. SurePayroll. Discover More