TIMECLOCK

WE HAVE NONEXEMPT HOURLY PRODUCTION EMPLOYEES WHO CLOCK IN FOR WORK IN THE MORNING, OUT FOR LUNCH AND BACK IN AT THE END OF THEIR LUNCH PERIOD, THEN CLOCK OUT AT THE END OF THEIR WORK SHIFT. WE NEED TO SET OUR CLOCK ON SOME REASONABLE INCREMENT SO THAT WHEN AN EMPLOYEE PUNCHES IN IN THE MORNINGS AND OUT AND BACK IN FROM LUNCH AND OUT AT THE END OF THE WORK DAY, WE WON'T BE ACCRUING A LIABILITY FOR PAYING OVERTIME FOR SUFFERING AND PERMITTING WORK TO BE PERFORMED BEFORE THE BEGINNING OF THE SHIFT, DURING THE SCHEDULED LUNCH BREAK OR AT THE END OF THE DAY. (NOTE: THE EMPLOYEE'S WORKSHIFT BEGINS AT 7:00 A. M. AND THEY HAVE 1 HOUR OF UNPAID LUNCH BREAK (ALL EMPLOYEES GO TO LUNCH AT THE SAME TIME)AND THE WORK DAY ENDS AT 5:00 P. M. THIS ADDS UP TO AN 8 HOUR WORK DAY.) WE HAVE LIKE 50 EMPLOYEES CLOCKING IN AT ONE TIME USING THE SAME CLOCK. MY QUESTION IS: DUE TO THE FACT THAT WE HAVE SO MANY EMPLOYEES CLOCKING IN AT THE SAME CLOCK, HOW DO WE NEED TO SET OUR CLOCK SO THAT IF SOMEONE CLOCKS IN AT 6:50 A. M. WE ARE NOT LIABILING OURSELVES FOR FLSA OVERTIME AND NOT PENALIZING SOMEONE ELSE FOR CLOCKING IN AT 7:02. IN THE EVENINGS, I WANT TO MAKE SURE THAT IF SOMEONE CLOCKS OUT AT 5:10 P. M., WE AGAIN ARE NOT LIABILING OURSELVES TO PAY FLSA OVERTIME.

SECOND AND RELATED QUESTION: DO WE PAY FLSA TYPE OVERTIME TO HOURLY RATE PRODUCTION EMPLOYEES EACH TIME THEIR DAY EXCEES 8 HOURS IN A WORK DAY OR DO WE ADD THE HOURS UP AND PAY ONLY FOR THOSE TOTAL HOURS AT THE END OF THE PAY PERIOD THAT EXCEEDS 40??

Comments

  • 5 Comments sorted by Votes Date Added
  • [font size="1" color="#FF0000"]LAST EDITED ON 06-23-01 AT 11:13AM (CST)[/font][p]This will be the third time that I have attempted to submit a reply to this thread and it failed to enter, but I'll try once more.
    First: Please unlock your "CAPS LOCK". It's easier to read without it.
    Second: We pay to the nearest quarter hour. The payroll program rounds up or down as appropriate. The so-called leeway is plus or minus 7.5 minutes of the shift start and ending times. EX: punch at 8 minutes prior to the starting time and the program rounds to 15 minutes before the shift starting time(ST).
    Punch 7 minutes before the ST and the program rounds to the ST. Punch 7 minutes past the ST and the program rounds back to the ST. Punch 8 minutes past the ST and the program rounds to 15 minutes past the ST. The same principal is used for shift ending time.
    Third: The program assumed a standard time deduction for lunch, subject to an override by the supervisor. However, the employee is still required to punch in and out for lunch.
    Fourth: Federal W&H requires OT after 40 hrs in a week but some State laws are different in that they require OT after 8 hours in a day. You should check the law for your State.

  • Don Avery's response is right on the money in all aspects. It is my understanding that only hospitals/health care facilities are currently permitted to use the 8 & 80 overtime option.
  • I know you said that everyone works the same schedule, but could you split the employees into 2 groups and just give a 15 minute different start/end time? I don't know what kind of production you are talking about and if it would be possible to open your doors that extra 15 minutes, but I think it could work.

    I don't know how long it takes an individual to clock in, but it seems that if you split and had people clocking in at 6:45 and out at 4:45 then a second set at 7:00 and 5:00, it might alleviate your problem of some people having to start earlier than the "rounding down" time.

    Using Don's example of the 7 minute rounding, then your first shift of 25 people could begin clocking in at 6:38 and be finished by 6:52 and still be counted as a 6:45. You would not have the bottleneck at starting/quitting time and could probably eliminate OT issues. The time differential is not so great and might even be considered a benefit to some employees to begin earlier.


  • Keep in mind that the regulations implementing the FMLA reguire employers to pay for "all time worked" and do not exempt employers from liability for underpaying overtime premium in a "rounding" scheme such as this one. This rounding method will generally be accepted, so long as in actual practice it does not result in employees being "shorted" time (rounded up) more often than it results in their being paid "extra" time (rounded down).

    As far as I can tell, the only way a challenge might arise is if an employee were to file a claim for unpaid wages, or if you were identified for a Wage and Hour audit. To test your exposure, try taking the last several weeks time cards, and look at teach clock in or out to determine whether it would rounded up or down. So long as the incidences of rounding down to the prior quarter hour occurs as often or more often then rounding up to the next quarter hour, you should be in good shape.
  • [font size="1" color="#FF0000"]LAST EDITED ON 06-26-01 AT 03:34PM (CST)[/font][p]It was for just the concern that you have expressed, that we only "counseled" employees who seemed to be setting a pattern of late in (5 to 7 minutes) and early out (5 to 7 minutes). Each time we counseled the effect usually lasted for a few months and then we had to nudge again. In counseling we took great pains to explain the principle of "averageing".
    One other solution that we used was to supply more clocks and to place them nearer to the work station.
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