Holiday Pay/Condensed work week.
AZHR
41 Posts
So, I have a dilema. We have 2 different hourly groups - those that work in a 24 hour operation, and those that work in the office (basically M-F). How we have been paying holiday pay is 8 hours straight time, whether you are scheduled or not. With this process, some will earn an extra 8 hours of straight time on their checks if they are scheduled to work.
We have recently allowed some employees to work a reduced work week - either 4/10s or 3/12s. Should we be paying those that are not in the 24 hour operation the full 10 or 12 hours they would have been scheduled? And, those that are not scheduled that day becuase of the reduced work week, do they get an additional 10/12 hours of holiday?
If we stay with the policy of paying 8 hours whether you work or not, those that are normally scheduled 10/12 hours will be short hours on their check. On the flip side, if we pay the 8 hours out to those that are not scheduled that day they will get the additional 8 hours. It seems however I work it, some one loses and I want to do what is right for both employee and employer.
Any help would be appreciated.
Comments
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We just implemented an optional 4/10 work week. I copied a portion of it below. So far, it is working for us. Good Luck.
The department managers will determine the work schedules within their departments. They will establish the start date for the new schedule.
4/10 Workweek
Employees are expected to work their scheduled work week. The day off will not fluctuate.
Daily Time Clock Rule will not change, which is as follows:
Hourly employees are paid for the time actually worked. If an employee is short 2.75 ? 6.5 hours per day on their time card, five (5) hours of personal leave or vacation time will be automatically applied from their account. If an employee is short 6.75 or more hours per day, ten (10) hours of personal leave or vacation time will be automatically applied from their account.
PTO/Vacation
Vacation and PTO accruals may be taken in five (5) or ten (10) hour increments.
Holidays
Employees will get paid eight (8) hours of holiday pay.
When a holiday falls on the employee’s day off:
Exempt employees must make up the 2 hours over the pay period in which the holiday occurs.
Hourly employees have the option of working an additional two hours in the same week or get paid for 38 hours.
When a holiday falls on the employee’s scheduled day off, the department manager will decide which day the employee will take off.
<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
We just implemented an optional 4/10 work week. I copied a portion of it below. So far, it is working for us. Good Luck.
The department managers will determine the work schedules within their departments. They will establish the start date for the new schedule.
4/10 Workweek
Employees are expected to work their scheduled work week. The day off will not fluctuate.
Daily Time Clock Rule will not change, which is as follows:
Hourly employees are paid for the time actually worked. If an employee is short 2.75 ? 6.5 hours per day on their time card, five (5) hours of personal leave or vacation time will be automatically applied from their account. If an employee is short 6.75 or more hours per day, ten (10) hours of personal leave or vacation time will be automatically applied from their account.
PTO/Vacation
Vacation and PTO accruals may be taken in five (5) or ten (10) hour increments.
Holidays
Employees will get paid eight (8) hours of holiday pay.
When a holiday falls on the employee’s day off:
Exempt employees must make up the 2 hours over the pay period in which the holiday occurs.
Hourly employees have the option of working an additional two hours in the same week or get paid for 38 hours.
When a holiday falls on the employee’s scheduled day off, the department manager will decide which day the employee will take off.
We just implemented different Alternative Workweek Schedules for several Work Units in our company, and have adjusted our Holiday Pay policies as a result. Paid Holidays and Vacation Time are optional for employers (at least they are in California), so the most important thing to do is to decide what your Holiday Pay policy is going to be (whether you pay 8 or 10 Holiday Pay hours, for example, or whether you allow exempt employees to take a 'floating Holiday' if the Holiday falls on a day they are already scheduled to be off, etc.), and then stick to your policy.
Here is an example from our 4/10 Alternative Workweek Policy for Non-Exempt employees:
<?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />Holiday Time<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
Paid holidays will be paid at the rate of 8 hours per day.
For Company-paid Holidays that fall on a Friday, affected employees working the Monday through Thursday Alternative Workweek schedule will be paid 8 hours of Holiday Pay in addition to their 40 hours of regular pay for that week.
For Company-paid Holidays that fall on a Monday, Tuesday, Wednesday or Thursday, affected employees working the Monday through Thursday Alternative Workweek schedule will be paid 8 hours of Holiday Pay, and have the option to use 2 hours of vacation time to be paid for 40 hours that week.
Hope this helps! In the end, we felt the employee benefits the most from this arrangement; although they may need to use 2 hours of their vacation time during some Holiday weeks (ex: Labor Day Holiday week), it was balanced out by the extra 8 hours of straight pay they received on other Holiday weeks (ex: day after Thanksgiving Holiday week). Thorough documentation and consistency in adherence to your policies are so important, especially here in California where the Overtime regulations are very strict.