
This semi-annual ritual of changing the clocks is often a concern for those employers who have non-exempt (hourly) employees working the late shift (at 2:00 a.m. when the clocks change). When the clocks are moved back those employees usually work an additional hour for the shift. When the clocks are moved ahead those employees usually work one less hour for the shift.
Under the Fair Labor Standards Act (“FLSA”) employers must pay employees for all hours worked and overtime for any hours worked in excess of 40 hours per week. So how do these basic rules apply during the changes related to Daylight Savings Time? Here is a summary:
Fall Backward: Employees
usually work one more hour per shift. Employers must pay the employee for the total number of hours actually
worked. So, if the shift is normally
eight hours, the employee must be paid for nine hours. The extra hour of pay must also be included in
the employee’s regular rate of pay for calculating overtime.
Spring Forward: Employees
usually work one less hour per shift. Employers may choose to pay the employee
for the normal number of hours worked for the shift; however, employers are not
required to pay employees for the hour that was not worked. If the employer does choose to pay the
employee for this hour, the employer does not have to include the extra hour in
the employee’s regular rate of pay for calculating overtime. The employer may not, however, use the extra
hour of pay as a credit to overtime compensation that is owed the employee.
As you enjoy these final waning days of summer you may want to add a review of your pay policies during the changes in Daylight Savings Time to your fall to-do list.
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