April 17, 2009

OT on PTO??

Of all the assinine questions I have received, this by far takes the cake...

Regarding overtime - do you pay overtime for hours "actually worked" or do you include paid vacation, holidays, etc. (time not actually worked) in your overtime calculation?

It would be so nice if each of us lived in "Perfect" where we received overtime pay when we didn't actually even work overtime. But, we don't live in "Perfect", do we? No, we live in the land of "Reality" and reality says that overtime pay is just that...OVERTIME PAY. If you didn't actually "work" 40 hours in the week (or 8 in a day in CA), then why in the world am I, as an organization, going to shell out an additional 50% of your pay? That just doesn't make much financial sense, now does it? Now, I will say that companies do handle this differently and how OT is paid is partially determined by company policy. But, let us not forget that all that is required, by law, is that the employee be paid overtime for all hours "worked" over 40 in a week (or 8 in a day in CA). I have seem some companies who thought they were based in the land of "Perfect" go above and beyond what is required and pay OT based on any hours within the week, such as PTO time used within the week. This is fine (and o, how I wish I worked there), as long as it is documented as a policy and is conspiciously known to all employees and is also applied to all employees.

Bottom line? As long as you comply with the requirements of the law, you should be fine.

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