#1  
Unread 06-16-2004, 01:29 PM
Rob S
 
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Default Semi-Monthy payroll and non-exempt at 86.67 hours

Our company has in the past paid non-exempts 86.67 hours a pay period (if they worked 8 hours each work day). We pay semi monthly (15th and last day of month). On a yearly total this works out fine - 24 periods * 86.67 = 2080 hours per year.

We do pay overtime if an employee works over 40 in a week, so I don't believe that is an issue.

My big question is if this is legal. I have been told by several people that this is the standard way to pay in a semi-monthly environment, but none of these people are experts.

If you know right or wrong, could you please list an regulations to back this up.

Thanks for any replies.

Rob S.
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  #2  
Unread 06-17-2004, 07:19 AM
LindaS
 
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Default RE: Semi-Monthy payroll and non-exempt at 86.67 hours

This is the way we are paid both exempt and non-exempt. We keep timecards to verify that any ee working more than 40 hours per week gets OT so I think we are good there.
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  #3  
Unread 06-17-2004, 07:24 AM
Rob S
 
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Default RE: Semi-Monthy payroll and non-exempt at 86.67 hours

Thanks Linda.

I think we are OK too, but we have a new HR person who is not so sure.

I am not finding much documentation out there for or against what we are currently doing.

I might post the question again in the main forum if I don't get answer from someone who can back it up with specific regulation.

Rob S
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  #4  
Unread 06-17-2004, 09:40 AM
kjsnyder
 
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Default RE: Semi-Monthy payroll and non-exempt at 86.67 hours

I don't think that you're going to find any regulations that address this particular issue on paying your employees. The regs address that nonexempts must be paid for all hours worked, including overtime after 40 hours during the workweek. So, as long as you are following this, and you're paying based on what your state allows, i.e. semi-monthly, then you're fine. You can show based on your time sheets that the 6.67 hours above the 80 are not overtime hours but based on the pay dates. And, paydates don't necessarily follow the FLSA workweek (on a semi-monthly pay they obviously won't). You can always try calling your state Wage and Hour Division to see if they have anything in writing that would be of help. In Arizona you can reach them at (602) 542-4515.
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