Hours Worked and Paid Leave Clarity

Our current policy for our work week declaration states: 

"Each employee shall be expected to work a 40-hour workweek.  Approved paid leave shall be considered time worked.  Hours worked in excess of 40 hours a in the workweek shall be paid at 1 1/2 times the employee's normal hourly rate"

The issue we are seeing is the approved paid leave is being considered and employees are using sick/vacation pay as well as getting overtime and this is in conflict with our policy that states: 

"pay in lieu of annual leave will not be granted..."

When I tried to remove "approved paid leave"  from our policy the administrator had an issue of employees getting sick and not getting paid overtime, but if out on vacation they should not also charge overtime and vacation hours as it is essentially a pay out. 

Any help to make this more clear as that is not the intention.

Thanks - Tiffany

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  • Hello Tiffany,


    I'm afraid I don't fully understand the issue you are describing.  Here is how our company policy treats overtime pay:

    "The overtime rate is one and one half (1½) times your regular hourly wage rate for paid hours over forty (40) hours in one week. If during that week, you were away from the job because of an approved absence (such as approved vacation, paid holiday, approved paid personal days), those hours not worked will be considered eligible hours for purposes of computing overtime pay."

    Our policy may not be your policy so it may not be helpful!

    • Grace Navera Thank you that is kind of what I am looking for our policy can be different than FLSA so trying to meet in the middle.

  • I have recently found this too at my current employer and was perplexed. I am wondering if there is some language in union contracts that count PTO/Holiday towards the OT hours.  I did some research.  I am based in MN so, our rules clearly state "Worked" hours therefore PTO/Holiday hours do not count towards OT. 

    Overtime is based on actual hours worked in a seven-day workweek, so holiday hours, vacation time and sick leave are not counted.

    check your state rules.

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    • Rikki Popsun That is how I read the FLSA rules, but I will defiantly check more into our state rules, I am in Wyoming, thank  you.

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    • Rikki Popsun In Ohio, vacation, sick, & PTO time is not included in actual time worked.  Therefore, if one took 8 hours PTO and actually worked 40 hours, they would not get that 8 hours at a time and a half rate.  You may want to double check Wyoming State laws.

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