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Throw a bucket of ice water on summer payroll problems

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in Centerpiece,Office Management,Payroll Management

As you gear up for employees’ summer vacation requests, remember that the Fair Labor Standards Act has a lot to say about working hours, calculating overtime when employees take a day off during the week and uniform policies. Here’s help navigating these choppy waters.

Too tan for a Monday?

July 4 falls on a Wednesday this year, so it’s likely that some nonexempts will take the weekend before as a long weekend and others will start their long weekend on that Wednesday.

Single most costly mistake: including vacation pay or holiday pay in employees’ regular rates when calculating their overtime rates. Vacation pay or holiday pay is idle time pay, which isn’t included in the regular rate calculation.

Example: Emily earns $15 an hour and works eight hours a day. She takes a paid vacation day on Friday; Monday-Thursday she works 45 hours, for a total of 53 hours.

Wrong way: She earns $600 in straight-time pay, $120 in vacation pa...(register to read more)

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