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Meal or Lunch Periods: Meal or lunch breaks are not work time and are not compensable, unless an employment agreement specifically designates meal periods as compensable. For a meal break to be excluded from an employee's working hours, it must be at least 30 minutes under normal circumstances, a shorter period may be considered a meal break under certain circumstances, such as where the employees themselves request a shorter meal period, but generally a period of less than 20 minutes, such as for coffee or snack breaks, should not be treated as a meal break and are usually considered rest periods and should be compensated as such.
Rest periods: Rest periods of 5 to 20 minutes count as hours worked and are compensable, because they are customary in industry, and they tend to increase the efficiency of the worker, which in the long run is beneficial to the employer. A rest period of more than 20 minutes may qualify as a non compensable meal break, if it can be used constructively by the employee. Like meal breaks, rest breaks are required by some states under certain conditions, but not by the FLSA.
Pre-work and Post-work Time: Whether waiting time is or is not compensable as hours worked under the FLSA depends on whether the employee is "engaged to wait" or is "waiting to be engaged". According to the Wage-Hour Division, being "engaged to wait" is compensable while "waiting to be engaged" is not. An example of "engaged to wait" would be employees that are required to stay on the employer's premises while they are waiting for their assignments. However, the employee's presence on the employer's premises is not necessarily the deciding factor. Employees can also be "engaged to wait" when they are working away from the employer's premises, such as when they are waiting to be allowed to enter a customer's home before beginning work. En example of "waiting to be engaged" would be employees who work for temporary help agencies ("Temps") and voluntarily wait in a central location to be sent on a job. Because they are waiting to be engaged, the waiting time is not compensable.
Although employers are not required to pay employees for arriving ahead of schedule for work, they must compensate an employee for the time that they have to wait when they arrive as scheduled and the work is unavailable until later.
Although employers are not required to pay employees for arriving ahead of schedule for work, they must compensate an employee for the time that they have to wait when they arrive as scheduled and the work is unavailable until later.
Travel / Commute Time: Travel from home to work (i.e., commuting) does not typically count towards hours worked. However, there are certain exceptions if the employee uses a company provided vehicle in the following way(s): (a) the commute is made for the convenience of the employer and (b) the employee is engaged in work-related tasks during the commute. Note: Commuting to and from work in a company vehicle within the normal commuting area of the business is not typically considered compensable and is subject to the terms of an employer-employee agreement. Compensable commute time in a company-owned vehicle may also be determined by whether the vehicle is provided for the convenience of the employee versus the benefit of the employer. Other examples of exceptions where travel time is considered hours worked (unless precluded by the terms of an employer-employee agreement) include: (a) traveling a substantial distance on an emergency after-hours call to engage in work for the employer's customers, (b) commuting in a company vehicle that carries heavy, burdensome loads for the benefit of the employer, (c) when an employer demands that an employee spends time driving other employees to work in a company vehicle, or (d) if travel is a part of an employee's principle job activity.
Holiday, Vacation, and Sick Leave: The granting of holiday, vacation, or sick leave, with or without payment, is entirely dependent on the employer and any agreement it may have with its employees. None of the time that an employee spends on holiday, vacation, or sick leave is treated as hours worked, even if the employee is compensated for the time. Leave time is always disregarded in computing overtime.
Example: An employee who actually works 40 hours during a week with a paid holiday is not due overtime for the eight "extra" hours recorded that week for holiday leave
Off-Duty and On-Call Time: Off-duty time refers to a certain amount of time specifically set aside for employees where they are entirely relieved of duty such that they may attend to their own business. Employers are required to give advanced notice of off-duty time so employees may leave work and are informed when work will resume. Off-duty time is not considered compensable unless the employee is required to wait during this time. On-call time is, under normal circumstances, not considered compensable time if the on-call time is not considered "overly restrictive" per se. An exception to this general rule can occur, however, if the employer establishes an overly restrictive on-call policy such that the employee's time is spent predominantly for the benefit of the employer.
PayMatic Payroll Service is a full service payroll bureau based in Monsey, NY providing payroll, HR and time and attendance solutions custom fit to your business needs. Additionally, PayMatic Payroll's team of certified HR professionals can answer questions in regards to wage and hour law, legal compliance and personnel issues in all 50 states.
PayMatic Payroll specializes in payroll for small and mid size businesses in all 50 states and has been providing complete payroll peace of mind since 2007.
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