OT + PTO in same week
mabuchi
1 Post
I am controller of a private company with 25 EE.
Part of my duty is to approval EE's OT payment.
Our vacation and PTO must be used or forfeitured
after year end. We are 9 to 5 with 1 hour lunch break and two 15 minutes breaks during each half day. Our OT rate is dividing weekly salary by the 40 and time 1.5.
My first question (A)is:
Am I doing wrong ?
One EE suggest to me, I should dividing the weekly salary by the 35 hours actually worked.
My next questions are basis on following case and need a selection of a correct answer (B,C or D).
One non-exempt EE take Friday PTO however this EE also work 2 hours OT each day from Mon to Thur.
What is the correct way to handle his/her OT ?
(B) pay EE full week's salary (40hrs) only, no OT,
because total Actual works not excess 40 hrs.
Also account 1 PTO day used in EE's annual bank.
(C) pay EE full week's salary (40 hrs)+ 8 hrs OT at 1.5 rate. 1 PTO day used in EE's annual bank.
(D) pay EE full week's salary (40 hrs) + 8 hrs
straight rate (1.0). 1 PTO day used.
I initially select (B) basis on this logic :
If we select either (C) or (D) then, it transform
our use-or-loss PTO into cash surrender value. Think about it, a EE works 40 hrs shall get a full week's pay. Now a EE still works 40 hrs, whom benefit from 1 PTO but get paid for 48 hrs, 8 extra hrs @ 1.5 per (C) solution or 8 extra hrs @ 1.0 per (D) solution.
EE disagree & claims, "it is pay-time-off ...
get pay anyway ...did actual 8 hrs extra works ..." (my reply ? PTO is voucher for time-off, not redeemable for cash ...)
Anyway, I tentatively settle it by solution (D).
Please help me analysis & give me your opinion, Thanks.
Controller in trouble.
Part of my duty is to approval EE's OT payment.
Our vacation and PTO must be used or forfeitured
after year end. We are 9 to 5 with 1 hour lunch break and two 15 minutes breaks during each half day. Our OT rate is dividing weekly salary by the 40 and time 1.5.
My first question (A)is:
Am I doing wrong ?
One EE suggest to me, I should dividing the weekly salary by the 35 hours actually worked.
My next questions are basis on following case and need a selection of a correct answer (B,C or D).
One non-exempt EE take Friday PTO however this EE also work 2 hours OT each day from Mon to Thur.
What is the correct way to handle his/her OT ?
(B) pay EE full week's salary (40hrs) only, no OT,
because total Actual works not excess 40 hrs.
Also account 1 PTO day used in EE's annual bank.
(C) pay EE full week's salary (40 hrs)+ 8 hrs OT at 1.5 rate. 1 PTO day used in EE's annual bank.
(D) pay EE full week's salary (40 hrs) + 8 hrs
straight rate (1.0). 1 PTO day used.
I initially select (B) basis on this logic :
If we select either (C) or (D) then, it transform
our use-or-loss PTO into cash surrender value. Think about it, a EE works 40 hrs shall get a full week's pay. Now a EE still works 40 hrs, whom benefit from 1 PTO but get paid for 48 hrs, 8 extra hrs @ 1.5 per (C) solution or 8 extra hrs @ 1.0 per (D) solution.
EE disagree & claims, "it is pay-time-off ...
get pay anyway ...did actual 8 hrs extra works ..." (my reply ? PTO is voucher for time-off, not redeemable for cash ...)
Anyway, I tentatively settle it by solution (D).
Please help me analysis & give me your opinion, Thanks.
Controller in trouble.
Comments
A) Yes, that would be right to take salary divide by 40 then times by 1.5 or just take their hourly rate and times by 1.5
One non-exempt EE takes Friday PTO however this EE also work 2 hours OT each day from Mon to Thur.
What is the correct way to handle his/her OT ?
If Michigan is a 40 hr work week then you would pay the ee for the 40 hrs worked and 1 PTO day at straight time.
In CA we have 8 hr work day / 40 hr work week.
we would have to pay the ee 32 hrs straight time, 8 hrs OT, 8 hrs PTO (straight time).
Check out [url]www.dol.gov[/url]
Hope this helps alittle.
Good luck!
Lisa
I am assuming by your info given, that you are paying people for 40 hours/week (i.e. giving them a paid 1 hour lunch break)? If so, then calculating OT using 40 hours is appropriate. If you are paying them for 35 hours, then you should use 35.
As to how to handle PTO and OT in the same work week, I'd say it goes back to how your policy reads. The company my husband works for allows him to receive overtime pay when all other hours exceed 40 in a week. I think, however, that this is rare. Personally, all of the policies that I write state that hours WORKED, not paid, are what is calculated into the OT rate. Also, some states may have laws where OT is due for more than 8 hours in a day. Some health care facilities that choose to pay overtime on the "8-80 rule" rather than a 40-hour work week also pay overtime after 8 hours worked in a day.
In your example, assuming no unusual circumstances or laws, I'd pay 48 hours of regular pay (40 regular, 8 PTO).
Our policy states that we do not include PTO when calculating hours worked for overtime purposes.
At a mfg company I worked for previously, we only counted holiday pay towards doubletime (working 7th consecutive workday and hours over 40); otherwise, all PTO was not included when determining hours worked, so I agree with your Option B.
Your second question, if I understand, has the ee working 9 hours a day for 4 days, then taking Friday off. In this case, no hours over 40 so no o/t. If scheduled to work Fri but doesnt, then use pto for additional 7 hrs (or whatever scheduled) to make up that time.
kay