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I am looking for some statistics. We pay overtime based on all hours paid (not hours worked) over 40 for the week. Therefore, if an employee works Monday - Thursday and has a vacation day (or holiday, sick day, bereavement etc.) on Friday and then works Saturday, we will pay 8 hours as overtime. We have been paying this way for 30+ years.

I know that most companies do not pay this way. We are considering a change, however, I need to provide statistical data that will indicate the percentage of companies that use 'worked hours' instead of 'paid hours' for determining overtime. Is there any such data available? I have not been able to find any.



  • I have never seen such statistics, although if we have any HR benefit types, they might know. I know that I worked for exactly one firm that used to do that, but they stopped. I do know that I have read (and written) published payroll articles stating that this is a bad idea. There are actual laws on overtime, both federal and state(s). All articles I have read (or written) said that when there is a law, do exactly what the law says, no more, no less. If your company wants to do something nice not legally required for its employees, use non-discretionary bonus payments. Or anything that does not have audit possibilities.

  • I have to agree with David. I very rarely see it and usually it is because the employer misunderstands the OT laws, not that they have made a conscious choice to pay this way. Most do exactly what they have to and no more and no less like he also said.

    I suspect you will have a lot less employees willing to work that extra Saturday though!

  • If the problem is getting people to work Saturdays, pay a non-discretionary bonus. But when DOL audits, you want to put them to sleep. Bore them out of their minds with how closely you are following THEIR rules so they will go bother someone else. I got a job at a VERY BIG COMPANY because of a failed IRS audit. I was told that my first priority was to make sure that never happened again (it did not). We were so ready for the next audit that AP staff practically dragged them into our area. We had (for example) W-9s for every payee, including one from IRS itself. By noon IRS got bored and moved over to HR where everyone was properly terrified. Hostile auditors hate it when they bore people.

    I worked for a (different) company that had a $25 ND bonus paid for perfect attendance during each week. That would include working weekends when required. We put it on a different check/DD so it was real obvious when the employee dropped the ball.

    There are 100s of people who are willing to work Saturdays for everyone who does not. Maybe you need different employees.

  • Per the FLSA, overtime is based on hours "worked".

  • Change in subject (sorry about that). I live the SF Bay area, and BART (our train service) finally found that they had a half a dozen janitors making more then their president/CEO. These folks would clock in, clock out 15 hours later, work 7 days a week, and 365 days a year. The union contract had all sorts of overtime rules that kicked in with those sort of hours. One of the local TV stations got hold of the camera footage for one train station, and found one of the janitors showing up for work, going into a small supply closet and coming out 12 hours later, presumably all rested up, since he had no work assignments in that closet. This apparently went on for at least 5 years with no one noticing. Which makes me wonder. Was there a supervisor(s)? Was he/she/them fired? Were everyone in the chain of command, including the CEO fired? Were their auditors fired? And if not why not? As far as I know, the janitors still work there. As does everyone else.

    Your tax dollars at work.

  • Our company is a hybrid when it comes to counting "time off" as time worked. We consider company holidays as time worked, but all other paid absences are not. I agree with the others in the thread that employers should stick to the requirements only.

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