10. Can You Use Comp Time Rather Than Pay Overtime? Unfortunately, an employer cannot offer comp time in lieu of overtime. Comp time is allowed only to employees who are on flexible work schedules. 11. Are There State Laws That Effect Overtime Some states have their own rules on overtime exemptions. Generally, if state law is more protective, then state law must be followed. Currently, only a few states (Alaska, California, Colorado, New York, and Washington) have minimum salary requirements for exemption that exceed the federal limit of $844 for the exemptions. State rules may also prohibit employers from using bonuses to satisfy part of the salary requirement. In addition, some states have different overtime requirements. For example, a number of states, such as California and Alaska, require overtime pay for any work over eight hours a day, while others require overtime for working more than 10 (Florida and Oregon) or twelve (Colorado) hours a day. Therefore employers must check their state law to ensure they comply with state overtime requirements. Conclusion Given the potential liability, possible different requirements in each state, the allocation of annual and quarterly bonuses, and the pending changes in salary levels, it is recommended that competent counsel be consulted to ensure each flooring dealer properly calculate overtime for its employees. The information contained in this article is abridged from legislation, court decisions, and administrative rulings, should not be construed as legal advice or opinion, and is not a substitute for the advice of counsel.
the $15base rate, an additional $7.50 (half the regular rate) must be paid for each hour worked over 40 hours. This would require the employer to add an additional $37.50 for a total pay that week of $712.50. Further complicating the calculations, is the growing trend by state to require additional compensation for rest periods and down time. For more information check out: “Piece-Rate Compensation: Get Ready for the Changing Rules,” Premier Flooring Dealer (Nov./Dec. 2015) (Piece Rates.com). 9. What Records Must Be Maintained? Every employer must keep certain records for each non-exempt worker. The Act requires no particular form for the records, but does require that the records include certain identifying information about the employee and data about the hours worked and the wages earned. The law requires this information to be accurate. The following is a listing of the basic records that an employer must maintain: 1. Employee’s full name and social security number 2. Address, including zip code 3. Birth date, if younger than 19 4. Sex and occupation 5. Time and day of week when employee’s workweek begins 6. Hours worked each day 7. Total hours worked each workweek 8. Basis on which employee’s wages are paid (e.g., “$9 per hour”, “$440 a week”, “piecework”) 9. Regular hourly pay rate 10. Total daily or weekly straight-time earnings 11. Total overtime earnings for the workweek 12. All additions to or deductions from the employee’s wages
13. Total wages paid each pay period 14. Date of payment and the pay period covered by the payment
Each employer shall preserve for at least three years payroll records. Records on which wage computations are based should be retained for two years. These include time cards and piece work tickets, wage rate tables, work and time schedules, and records of additions to or deductions from wages.
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