Page 1 of 4 1234 LastLast
Results 1 to 10 of 33

Thread: Hourly Employee Overtime Question

  1. #1
    Wizard29
    My company has several hourly employees that punch in and out on a time clock every day. The employees punch in and out around their scheduled times (within a few minutes), but often they will have slightly more than 8 hours in a day, usually 5 or 6 minutes maximum. Over the course of a week or a month those minutes add up, especially when you spread it out over as many employees as we have.
    We have a payroll company (who collects their fee based on a percentage of our total payroll) that tells us we must pay the employee overtime for each minute over eight hours. Based on the calculations of some weekly averages, this is costing us close to $15,000 a year in overtime. Works out pretty well for the payroll company who gets their percentage of an extra $15,000.
    I have heard that employers are required to compensate hourly employees overtime for each increment of 15 minutes worked. As an example, an employee who is supposed to be off at 3PM works until 3:20PM would get paid for the extra 15 minute period of overtime, but not the extra 5 minutes beyond the 15. If that employee worked until 3:30PM, then they would be paid for a full 30 minutes of overtime.
    The 15 minute rule thing sounds reasonable to me, but is it correct? I have a couple of HR sources I am checking with, but I wanted to see if anybody here knows. If the 15 minute rule is not correct, what is?

  2. #2
    abraman1326
    I've heard it's the 15 mon rule as well. Always rounded, say if someone got off at 3:07, no OT, but at 3:08, 15 mins of overtime. Good luck and let us know. This is an interesting subject to be up to date on...
    BRA

  3. #3
    wsuwrhr
    Sounds like you need to set some ground rules with the payroll company.
    AE used electronic timeclocks and also Paychex do their payroll.
    They were pretty anal about clocking in no more than 15 min before the shift started and no later than 15 minutes after the shift ended.
    My company has several hourly employees that punch in and out on a time clock every day. The employees punch in and out around their scheduled times (within a few minutes), but often they will have slightly more than 8 hours in a day, usually 5 or 6 minutes maximum. Over the course of a week or a month those minutes add up, especially when you spread it out over as many employees as we have.
    We have a payroll company (who collects their fee based on a percentage of our total payroll) that tells us we must pay the employee overtime for each minute over eight hours. Based on the calculations of some weekly averages, this is costing us close to $15,000 a year in overtime. Works out pretty well for the payroll company who gets their percentage of an extra $15,000.
    I have heard that employers are required to compensate hourly employees overtime for each increment of 15 minutes worked. As an example, an employee who is supposed to be off at 3PM works until 3:20PM would get paid for the extra 15 minute period of overtime, but not the extra 5 minutes beyond the 15. If that employee worked until 3:30PM, then they would be paid for a full 30 minutes of overtime.
    The 15 minute rule thing sounds reasonable to me, but is it correct? I have a couple of HR sources I am checking with, but I wanted to see if anybody here knows. If the 15 minute rule is not correct, what is?

  4. #4
    Wizard29
    So you split the 15 minutes? My impression is that the 15 minutes wasn't earned until the full 15 minutes was worked. In other words, an employee who is off duty at 3:14 would not be paid 15 minutes of overtime where the employee who actually worked until 3:15 would.
    No?

  5. #5
    Kilrtoy
    Payroll is usually covered under an mou/contract
    we do it in 6 minutes,
    BUT ME PERSONALLY
    I never put in a slip unless it is an hour,
    I guess im not chicken shit about a few minutes....

  6. #6
    pixilatedpussy
    My company has several hourly employees that punch in and out on a time clock every day. The employees punch in and out around their scheduled times (within a few minutes), but often they will have slightly more than 8 hours in a day, usually 5 or 6 minutes maximum. Over the course of a week or a month those minutes add up, especially when you spread it out over as many employees as we have.
    We have a payroll company (who collects their fee based on a percentage of our total payroll) that tells us we must pay the employee overtime for each minute over eight hours. Based on the calculations of some weekly averages, this is costing us close to $15,000 a year in overtime. Works out pretty well for the payroll company who gets their percentage of an extra $15,000.
    I have heard that employers are required to compensate hourly employees overtime for each increment of 15 minutes worked. As an example, an employee who is supposed to be off at 3PM works until 3:20PM would get paid for the extra 15 minute period of overtime, but not the extra 5 minutes beyond the 15. If that employee worked until 3:30PM, then they would be paid for a full 30 minutes of overtime.
    The 15 minute rule thing sounds reasonable to me, but is it correct? I have a couple of HR sources I am checking with, but I wanted to see if anybody here knows. If the 15 minute rule is not correct, what is?
    I have always done my payroll according to the 15 min rule as well. Just out of curiousity...what payroll company earn a percentage??? Ours is strictly a flat rate. Goes by how many employees & a check cutting fee, as well as a tax prep fee. Very minimal. Sounds like you need to look for a new company!

  7. #7
    pixilatedpussy
    So you split the 15 minutes? My impression is that the 15 minutes wasn't earned until the full 15 minutes was worked. In other words, an employee who is off duty at 3:14 would not be paid 15 minutes of overtime where the employee who actually worked until 3:15 would.
    No?
    Its ticky tack...generally I give my employees the 15 even if it is 10 or 11 mins...so on & so forth. A normal person would nt care about the extra minute! If they did then they would have worked it!

  8. #8
    HM
    Where is Rinda?

  9. #9
    Biglue
    In the past we have rounded up or down to the nearest 1/4 hour at the 7 1/2 minute mark. That way it's a give and take situation. Just don't let the employees know that, they will figure it out.

  10. #10
    HavasuHome
    We always rounded up or down according to the 7.5 min rule of thumb.

Page 1 of 4 1234 LastLast

Similar Threads

  1. Quick AZ overtime question
    By Some Kind Of Monster in forum Sandbar
    Replies: 27
    Last Post: 04-24-2007, 09:22 AM
  2. Hourly cost to run your boat
    By whiteworks in forum Sandbar
    Replies: 3
    Last Post: 07-12-2006, 09:45 PM
  3. how much overtime
    By bergen in forum Gear Heads
    Replies: 8
    Last Post: 05-17-2006, 05:25 PM
  4. lots of overtime........
    By Sherpa in forum Sandbar
    Replies: 0
    Last Post: 05-24-2005, 03:56 PM
  5. Employee incentive question
    By OutCole'd in forum Sandbar
    Replies: 29
    Last Post: 10-29-2004, 06:04 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •