Paid holiday, sick and vacation Time - credit towards OT

tom · August 2001

I know this has been asked before, but I was wondering if I could hear how others handle paid time towards the calculation of OT. At present, we calculate any paid time towards the computation of OT.
We are a manufacturing concern with over 1,000 employees in multiple sites. I am not sure it would be a wise decision.
Thanks- Tom

Down_the_Middle · August 2001

I believe most employers handle OT based on hours worked, vs hours paid. Unless you have a union agreement that requires this to be done, I would think you will realize substantial savings by converting to hours worked. The law requires hours worked, so you're offering more than is required. Yikes.....that's an expensive benefit.

Margaret Morford · August 2001

Make sure you check the laws in your state regarding how to count hours for jury duty. Many states require that you count that time as hours worked.

One other suggestion, I usually recommend that you count bereavement as hours worked. Bereavement doesn't happen often and it seems to add additional insult if the employee returns to work after a death in his/her family and doesn't get paid OT for the extra effort.

Margaret Morford
theHRedge

PMI · August 2001

[font size="1" color="#FF0000"]LAST EDITED ON 08-14-01 AT 12:23PM (CST)[/font][p]We use actual hours worked + paid time that is NOT employee discretionary, such as jury duty, military leave, & company holidays. Voluntary leave, including sick, personal, and vacation time, are not included in the OT calculation.

bsa · August 2001

We pay OT based on hours worked. Holiday, vacations, etc are not included in OT calculation.

Don Avery · August 2001

We included Vacation and Holiday hours in the OT calculation based on the premise that Management controlled when those hours were used and could avoid OT by not scheduling more than 40 hours including Vacation and paid Holiday hours. Note that sicktime was not included in the OT calculation because Management could not control when an employee might get sick. The main reason that caused us to include these nonworked paid hours was a situation when one of our (Hospital) plumbers was on vacation, we had an emergency that required attention that day and our only other plumber had called off sick. Options were limited to calling in a contractor (very expensive!) or calling the plumber on vacation (we happened to know he was at home) to see if he would come in to take care of the problem. He did, but stated that he would never break up a vacation again if we were only going to pay straight time for coming in to help. After pondering the issue and considering that we did have control concerning when vacation and Holidays were scheduled, we decided to include them in OT calculations. The additional cost was minimal because of that ability to control.

Paid holiday, sick and vacation Time - credit towards OT

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