Overtime Pay around holidays and paid time off
chaiscom
4 Posts
Here is the situation. An employee takes a Monday off, requests 8.0 hours of PTO and it is approved. Then the employee works 9.25 hours on Tuesday and 9.25 hours on Wednesday. Thursday and Friday are holidays. Would this be 34.5 hours worked and then 8.0 hours PTO resulting in 40 hours regular and 2.5 overtime?
Comments
Only hours actually worked count in the overtime calculation. Therefore, holidays not worked, vacation days, sick days, PTO etc., are not counted. The fact that an employee receives holiday pay, vacation pay, or sick pay is of no consequence for overtime purposes. The test is hours worked rather than hours paid.
If you are in a state, like CA, where you have to pay overtime for more than 8 hours in a day, you might owe for the extra 1.25 hours on Tuesday and Wednesday.
Ruth is right . . . unless your company's policy or practice has been to include PTO and/or holiday hours in the calculation for OT.
At our company ONLY hours worked are used as that is all that is required. So for the example you gave the person would be paid for 8 hours of PTO, 18.25 hours of work time, and 16 hours of holiday time.
Only hours actually worked count in the overtime calculation. Therefore, holidays not worked, vacation days, sick days, PTO etc., are not counted. The fact that an employee receives holiday pay, vacation pay, or sick pay is of no consequence for overtime purposes. The test is hours worked rather than hours paid.
If you are in a state, like CA, where you have to pay overtime for more than 8 hours in a day, you might owe for the extra 1.25 hours on Tuesday and Wednesday.[/quote]
I couldn't have said it better myself. The other posters' point about past practice is also important, which brings up the additional topic of collective bargaining agreement. If there's a CBA in place you will need to know if it addresses this point.