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Jan06

Can vacation time be counted toward overtime pay?

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If an employee works less than 40 hours but takes vacation (8 hours per day) to the effect that total compensated time is over 40 hours, does he or she eligible for overtime?

No, vacation or paid holidays are not counted towards overtime. The federal FLSA or Fair Labor Standards Act is very clear on this matter. An employee is entitled to overtime when he or she WORKS more than 40 hours in the payroll week. Any time that the employee is paid for, but does not WORK, does not count towards overtime.

Suppose Raul works 35 hours this week and takes 8 hours of vacation, for 43 hours total. He is entitled to 35 hours at straight time for hours worked, and 8 hours at straight time for vacation. This is entirely lawful. Now suppose next week, Raul works 42 hours and takes 8 hours of vacation, for a total of 50 hours. Raul is entitled to 40 hours straight time, 2 hours of overtime, plus 8 hours of vacation at straight time.

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This entry was posted on Wednesday, January 6th, 2010 at 9:39 am and is filed under
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