Feb. 13 SVAPA Meeting

advertisement

Thursday, February 13, 2014

Hours Worked

and

Related Pay Obligations

Presented by:

Brian Dixon

Co-Chair, Wage and Hour Practice Group

Littler Mendelson, P.C.

BDixon@littler.com

415.677.3194

Please Note:

Descriptions of these federal and state laws are summaries and should not be relied upon at face value without considering the text of the statutes and/or speaking with an attorney.

Agenda

• What is work time?

– Limited general concepts, state variations,

“cookbook” approach under each law

• What pay obligations flow from work time?

– Meal and rest periods

– Days of rest

– Reporting pay, split shift premiums

What is “Work”?

• The FLSA does not include a definition of “work”

Continuous Work Day – Federal Law

• Employees must be paid for all hours within a workday, from the first principal activity to the last principal activity

• A “principal activity” includes any activity that is an integral and indispensable part of an employee's work

• In general, “work” includes all the time an employee must be on duty, on the employer’s premises, or at any other prescribed place of work

Work “Suffered or Permitted”

• All work “suffered or permitted” by the employer must be compensated, including:

– Work requested or required by the employer

– Work not requested, but permitted

– Work the employer knows or has reason to believe is being performed – even if not expressly requested

Key Concepts

• Work is broadly interpreted to the employee’s benefit

• Employees must be paid from

“whistle to whistle,” with limited exception

• Work includes any time the employee is required, requested, suffered or permitted to work

• It is the duty of management to see that work not required or requested is not performed

Analysis of Working Time:

Book-Ending the Day

• What time did the employee perform the first principal work activity?

• Is the employee performing work remotely?

– Is remote work being captured in timekeeping system?

– Is travel time being captured?

• What time did the employee perform the last principal work activity?

• Is the employee working from home at night?

Is the Activity Work Time?

• Meal & Rest Breaks

• Waiting Time

• On-Call Time

• Training/Meeting Time

• Travel Time

• Pre- and Post-Shift Activities

• Sleep Time

• Grievances, Suggestion Systems and Charitable

Activities

Meal & Rest Breaks

• A meal period may be unpaid if 30 minutes or longer and the employee is completely relieved of duties

• An employer may require an employee to remain at the worksite during a meal or rest break without making the meal period into work time under federal law

• A rest period of 20 minutes or less is compensable work time

On-Call Time

• On-call time is compensable if an employee is unable to use the time effectively for his/her own purposes

– Required to stay on or close to the employer’s premises

– Responds to calls frequently

– Short required response time

– Any other limitations on employee’s use of his or her time

– Any practice which limits the burden of being on call

• On-call time is not work merely because the employee is required to carry a pager, cell phone or leave a telephone number where s/he can be reached

Waiting Time

• Employees must be paid for time spent

“engaged to be waiting”

• Employees “waiting to be engaged” are not working

Training/Meeting Time

• Training/meeting time is compensable work hours unless all four of the following requirements are met:

1. Attendance is outside regular working hours

2. Attendance is voluntary

3. The training/meeting is not job related

4. The employee does not perform any productive work during the training/meeting

Travel Time - FLSA

• Compensable

– Travel between job sites during the work day

– Travel to another city for special one-day assignments (minus normal commute time)

– Overnight travel during the employee’s normal work hours (on a work or non-work day)

• Not Compensable

– Normal home-to-work commuting, unless employee begins work prior to commuting

– Overnight travel, if outside the employee’s normal work hours (on a work or non-work day)

Travel Time

• Some states laws require all travel time to be paid except the normal commute

• Travel time can be paid at a different lower wage rate (e.g. at the minimum wage), if that rate applies to all travel

Travel in Company Vehicle - ECFA

• Home-to-work travel in a company vehicle, and any activities “incidental” to such travel is not work time where:

– Use of vehicle is voluntary

– No expense is incurred by employee in use of vehicle

– Vehicle is of a type ordinarily used for commuting

– Work sites are within normal commute distance of employer's office

Pre- and Post-Shift Activities

• Work:

– Booting up and turning off the computer

– Reading emails

– Shift-change conversations

– Donning/doffing

• Not work:

– Commuting

– Walking from the parking lot to the work station

– Waiting to punch a time clock

“Donning and Doffing”

• Compensable:

– If putting on and taking off clothing or protective gear on the employer’s premises is required by law, the employer, or the nature of the work

– Waiting in line for uniform

– Walking after obtaining the uniform to the place where employees don/doff and to the work station

“Donning and Doffing”

• Not Compensable:

– If employees are allowed to don/doff clothing at home, but choose to change at work

– If the aggregate time spent donning, walking, waiting and doffing is de minimis

Cleaning & Maintaining Uniforms

• What is a uniform?

– Defined by state law

– Usually includes any distinctive clothing that an employee would not wear on a non-work day

– Uniform: a shirt with a company logo

– Not a uniform: khaki pants with a blue shirt

• Employees may be working if required to clean or repair a uniform beyond normal washing and drying

Suggestion Systems, Resolving Grievances,

Charitable Activities

• Time spent by an employee preparing suggestions, resolving grievances and participating in charitable activities need not be compensated if:

– Participating in the activity is voluntary, and

– Occurs outside normal working hours

Sleep Time

• Sleep time can be excluded from work time only if for employees on duty 24 hours, and the employee:

– Agrees that up to 8 hours of sleep time will not be paid

– Has adequate sleeping facilities

– Is generally able to enjoy an uninterrupted night of sleep

– Is paid for any interruption of sleep time

– Is paid for the entire night if the employee gets less than five hours of sleep

– Up to three, one-hour off-duty meal periods also may be unpaid

“Off-the-Clock” Red Flags

• Recorded time is almost always a nice round number (e.g., 9:00 a.m., 5:30 pm)

• Recorded time is almost always the same as the scheduled shift

• Time records show a significant number of missed punches, adjustments to time, or other anomalous entries

• Time punches/entries do not match hours worked shown on payroll records

• Employees observed in the workplace before clocking in, during lunch, or after clocking out

“Rounding” Time

• Rounding increment does not exceed quarter hour

• Rounding operates to the benefit and burden of the employee and the employer

– Schedule corresponds with the rounding increment

– No employer practice undoes rounding

– Round meal periods?

“De minimis time”

• De minimis amounts of time need not be recorded or paid

• Time may be de minimis based on:

– Amount of time on any single occasion

– Frequency of occurrence

– Administrative difficulty in recording the time

– Total amount of time at issue

Meal & Rest Breaks

State Law

• About 25 states require meal breaks

– States with meal break requirements usually require a 30-minute break after 5 or 6 consecutive hours of work

– Some states require that employees be free to leave the worksite

• Less then 10 states require rest breaks

– States with rest break requirements usually require a 10-minute break for each 4 hours of work

California Meal Periods

• One 30-minute meal period for every five hours of work, unless

– Six hours of work will complete the employee's work for the day and the employee waives the meal period

– Variations by wage order for some initial meal periods and second meal periods

• An on-duty meal period can be used only where:

– The nature of the work truly prevents the employee from being relieved of all duties

– The employee agrees in writing to work through the meal period The meal period is counted and paid as work time

California Rest Periods

Hours of Work Rest Periods

6 -- 1 0

1 0 –– 1

1 16

Reporting Pay

• Some states require employers to pay an employee for a minimum number of hours if the employee reports to work when no work is available

– Paid at the employee’s regular rate

– Pay the lesser of a minimum number of hours or the scheduled shift

– Requirements vary by state and, within states, can vary by industry

Reporting Pay

• California – 2 to 4 hours

• Connecticut – 2 or 4 hours in some industries

• Washington, D.C. – 4 hours

• Massachusetts – 3 hours

• New Hampshire – 2 hours

• New Jersey – 1 hour

• New York – 1 to 8 hours, depending on industry, shifts

• Oregon – 1 hour to minors only

• Rhode Island – 3 hours

Split-Shift Pay

• Employers may be required to provide extra pay for employees who work a split shift in:

– California

– New York

– Washington D.C.

• Split-shift scheduling is prohibited in Hawaii

• California split-shift premium:

– ((Hours Worked + 1) * MW) – Wages Earned

• New York split-shift premium

Split-Shift Pay

• Only New York defines a split shift:

– 10 hour non-work period between shifts

• California, New York and D.C. all require an additional 1 hour of pay at minimum wage, but this requirement is met if:

– Wages Earned > (Hours Worked + 1) * MW

– If test not met, pay the difference

Day of Rest Laws

• Half a dozen states have day-of-rest laws

• Many are related to recognizing a Sabbath and may have Constitutional issues

• California – an employer must provide one day’s rest out of every seven

Questions and Answers

Thursday, February 13, 2014

Thank You

Brian Dixon

Littler, San Francisco

Download