Calculating Overtime
TBHRPRO
27 Posts
Our company has a current policy of using holiday hours and vacation hours when calculating overtime. We are looking at possibly changing that to using only hours worked. Can you tell me if your company calculates overtime by including holiday and vacation hours, or only on hours worked.
Comments
Financially speaking, your company would almost certainly save money if you don't count those hours, and you will probably reduce call-ins from those who would no longer get that extra half-time OT pay by taking off work another day.
But you will undoubtedly take a negative ER hit, because nobody likes to have benefits taken away.
Can you share why you are considering a change?
You already know the ones with little or no OT pay will be fine with the rule change because they are receiving new benefits with no loss of income. But the ones with significant OT will not see the loss of certain income versus an unknown future benefit they may or may not ever use as being a good deal.
Your best win-win is not to change your OT policy and yet still provide the new benefits. Hopefully the math will come out such that Management will feel it can afford both. If not, you'll have to then decide what's in the best overall interest of your entire workforce. Good luck.
Before I came they paid ot on time paid for jury, brevement, etc. Several years ago, I made a few changes. We still pay overtime for vacation and holiday pay. However, we stopped OT on other pay (personal time, berevement, jury, etc.) The personal time (16 hours a year) the supv. has no control on when taken. It was crazy that employee had "power" over when paid for this as well as OT. I can see that vacation OT would be the next to go, but not gotten into this yet. Employees were very upset about personal time OT and felt it was their entitlment. (Hard to understand how people think.) Holiday I can see because the company controlls this. However, can be hard to get folks to work "over time" when vacation involved if don't pay OT. (Again entitlment thought process.) I still would like to get PTO in and address some changes then. (I have worked under PTO and love it for all.)
E Wart