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Housekeeping Manager

When approving payroll for non-exempt staff is it legal to pay them for the scheduled shift time worked only? For example: if the shift is 8-5 and I am budgeted for that 8 hrs. only, am I required to pay them for clocking in at 7:55 and out at 5:15? Is it legal to approve and pay scheduled times only and delete the overages of before and after shift times clocked in?

It is not legal to pay a non-exempt employee by their shift only. The U.S. Department of Labor states that non-exempt employees must be paid one and one-half times their hourly rate for all time worked over 40 hours. However, Infrequent and insignificant periods of time beyond the scheduled working hours, which cannot as a practical matter be precisely recorded for payroll purposes, may be disregarded. The de minimis or insignificant times relates to time such as a few seconds or minutes in duration.  5 to 15 minutes are not insignificant, when over a period of a workweek can accumulate to a significant amount.

In addition, if you are using a time clock, the U.S. Department of Labor suggest that employees start and stop time are rounded to the nearest 5 minutes. This type of arrangement average out so that the all of the time actually worked by the employee is properly counted and the employee if fully compensated for all the time actually worked.

This entry was posted on Sunday, March 10th, 2013 at 3:05 pm and is filed under
Human Resources Management.
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