But the Customer

We have a large population of our employees who work on-site in other companies. These employees follow their holiday schedule and we pay them according to the host companies paid holiday schedule. This works well for these employees - we take 7 holidays most of these companies take 9 or more. My question is - this week our payroll has 24 hours of work and 16 hours of holiday time. Anything over 24 hours is considered overtime. I have several of these employees who worked 26 hours and are due 2 hours of overtime. The host company however does not include holiday in OT calculation. I think I still should pay our employee the OT. The Branch Manager disagree's. These employee's work for us and should follow our policies. I agree with following the holiday's - we can't get into the plant and they pay us. Any thoughts - before I go to battle?

Comments

  • 6 Comments sorted by Votes Date Added
  • What are your policies on OT? Do you pay it for over 40 hours or over 8 hours? Look at that then it should be an easy decision. If you normally only pay OT after 40, they should not be paid OT. If you pay it after 8, well then you should pay it.
    My $0.02.
  • Don't you think that this is a consistency issue? Your employees get some of the same treatment at their host companies and other issues are based on your companies policies. How clear is it to them as to when which rules apply? How many other time and attendance, wage and hour rules do you go by at the host companies? I can see it both ways. I would make the decision based on which set of rules they are most accustomed to you enforcing.

    Good Luck!!
  • I agree with Terri that the issue of consistency should never leave doubts. The employees should know at all times what rules they are expected to go by and which rules apply when. It is common however, for employees to be bound by certain rules of the host worksite, such as: work hours, dress code, housekeeping, behavior and relationships in the workplace. It is also common for those types of 'outstationed' personnel to be bound by the payroll procedures of the primary employer. I would look at this like I would how temps are paid. They observe all the primary rules of the host worksite but are paid in accordance with the primary employers rules and procedures. I would think that making this distinction very clear upon hire would always leave no doubt as to which rules apply. I disagree with your guy there. If you go with his theory, the rules would change everytime the job's domicile changes.
  • The law only requires an employer to pay overtime for more than 40 hours worked in a week (not including paid time off). Therefore, company policy should dictate. If your company has a policy of including paid time off as hours worked for overtime calculations, then you should pay it. If your company does not have that policy, then it does not need to be paid.

    Good Luck!
  • Theresa: I'm not sure we're all responding to the same question here. The question was one of confusion over which or whose policies to follow, the host worksite or the primary employer's. Sometimes one is followed, sometimes the other's is followed. Neither of them would REQUIRE the payment of overtime in this case. The dilemma for the company is how or whether to come up with a policy of consistency that addresses these variables among host worksites.
  • I stand by our policies for payroll, attendance, etc. The policy of the host company regarding safety, dress code, and the shutting of the facility we follow their policy. They reimburse us for holidays that are not on our schedule. We are paid by the host company for these extra- the employee's get paid. We have consistently paid these employees the OT based on our policy. I feel it is important to continue with this policy. These employees work on a contract and their jobs are contingent on keeping that contract. I think it is a fair trade off, they might get a few extra days off, but if the company comes in a cancels our contract they are out of work. We have good employee in these positions and we want to keep them. Thanks for all of your comments.
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