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Feb23

Computing hours for benefits eligibility

Our benefits were filed with an indication that only full-time employees are eligible, and in order to be considered full-time, the employee must work a 30 hours week average. Our time clock system computes averages based on 13 weeks of time, and discounting any paid sick or vacation time (for hourly employees), so it is clear from our reporting who averages 30 hours or more a week.

However, we have several exempt, salaried employees who are on reduced work weeks. The question is, how do we compute full-time eligibility for benefits for these exempt, salaried employees? Our salaried employees do use the time clock system (for accounting/auditing purposes).

Exempt employees are paid on a salary basis regardless of the number of hours worked per week. A salary person can work 25 hours or 60 hours per week until the job is done. An exempt employee does not necessary need to punch a time clock because they are paid the same regardless of the hours worked. If they are punching a time clock it should be for exceptions reasons only.

You should compute the full-time eligible employees as working “full time” and offer the benefits.

This entry was posted on Saturday, February 23rd, 2013 at 9:53 pm and is filed under
Human Resources Management.
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