USA Payroll Calculations

[lsm477]

I have an employee who is salary non-exempt and they receive OT for anything over 40 hours.

The question this employee keeps bringing up is why they aren't paid for their 'straight' time on holiday weeks. I'll give an example.

Thanksgiving Week we had 2 company holidays - Thursday and Friday.

Employee worked 30 Hours M/Tu/W
Paid Holiday 16 Hours
Total Hours 46 Hours

Since they exceeded 40 hours total, they want to be paid 'straight time' for the additional 6 hours on their time sheet.

Are they entitled to this straight time?

Thoughts/Concerns/Questions

 

[kirby]

30 hours in 3 days - looks like they worked 3 ten hour days. In Calif, anything over 8 in a day gets OT. So those 6 hours would be at OT rates in Calif.
In any case, Fed law would be based on the workweek but still require OT pay for the 6 hours over the 40 in a week 'cause total hours is 46.

 

[lsm477]

30 hours in 3 days - looks like they worked 3 ten hour days. In Calif, anything over 8 in a day gets OT. So those 6 hours would be at OT rates in Calif.
In any case, Fed law would be based on the workweek but still require OT pay for the 6 hours over the 40 in a week 'cause total hours is 46.

Thanks for your reply Kirby. We are in Maryland not CA, so we are not subject to the per day OT regulations. The way I read the DOL OT regs is that anything WORKED over 40 shall be compensated with OT. Since 16 of those hours were not worked but time off paid out as compensated holidays. I don't feel that the additional time needs to be paid out. Would love to hear your comments regarding my reply. Thanks!

 

[kirby]

Must employers count holiday leave, vacation and sick leave hours taken during the workweek toward the overtime requirement?

No. The Fair Labor Standards Act (FLSA) requires employers to pay nonexempt employees time and one half of the employees' regular rate of pay for all hours worked over 40 in a workweek. Employers do...

www.shrm.org

There is the above which supports your point. Be aware it does not define which US State this approach is legal in. That is: a state may have additional laws concerning this issue.