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5 challenges with compensable time
2022-09-23T05:00:00Z
These days, many work-related tasks can feel complicated. Paying employees, however, shouldn't be that hard, right? It should be straight forward. Employees come to work (or log in to work), do their jobs, and get paid. Simple. Those working in HR know that at times, though, even the simplest tasks can get complicated.
Knowing when employees must be paid
Below are five common challenges when it comes to paying employees:
- Waiting Time: Whether waiting time is hours worked depends on the particular circumstances. An employee may be "engaged to wait" (which is work time) or may be "waiting to be engaged" (which is not work time). For example, a firefighter who plays checkers at the fire station while waiting for an alarm is engaged to wait and the time counts as work. It's not considered hours worked when employees are completely relieved from duty and the timeframe is long enough for their own personal purposes. For example, if a truck driver leaves the terminal at 6 a.m. and arrives at the destination at noon and is completely relieved from duty until 6 p.m., the idle time is not working time. The driver is waiting to be engaged and does not need to be paid for that time in between.
- On-Call Time: An employee who is required to remain on call on the employer’s premises (or so close that they cannot use the time effectively for their own purposes) is working while on call. An employee who is required to remain on call at home, or who can leave a message where they can be reached, is not working (in most cases) while on call. Constraints on the employee’s freedom could require this time to be compensated. Typically, the issue comes down to the degree of control imposed by the employer. The more limitations that are imposed, the more likely that the on-call time will be “working” time that must be paid.
- Breaks and Meal Periods: The federal Fair Labor Standards Act (FLSA) does not require that employers provide rest periods or coffee/snack breaks to the general employee population. However, the FLSA does require breaks for nursing, nonexempt mothers. If employers choose to offer short breaks, usually lasting between 5 to 20 minutes, the breaks must be considered hours worked and employees must be paid for the time. The FLSA also does not require that employers provide meal periods. During meal periods, which typically last between 30 to 60 minutes, the employee must be completely relieved from duty. Meal periods are not considered hours worked and don’t have to be compensated. However, if the employee is not totally relieved of job duties during they are eating a meal, then the employee must be paid for that time.
- Lectures, Meetings, and Training Programs: In most cases, time spent in training or meetings is considered hours worked that must be paid. The FLSA states that this time must be paid, unless these four specific criteria are met:
- Attendance is outside of the employee's regular working hours,
- Attendance is in fact voluntary,
- The course, lecture, or meeting is not directly related to the employee's job, and
- The employee does not perform any productive work during such attendance. Note that all four of these criteria must be met — if not, the time is paid working time. It's also important to note that attendance is not "voluntary" if the employee believes that failure to attend would adversely affect working conditions or employment. If an employee attends an independent school, college, or trade school after hours, the time is not hours worked even if the courses are related to the job.
- Travel Time: In most cases, travel time counts as working time. When travel is considered "hours worked," the time must also be counted to calculate overtime. Most state laws do not address travel time (though some do), and the FLSA applies. The FLSA mainly addresses three types of travel: During a normal work day, to another city in the same day, and overnight travel to another city. While there are certain stipulations for each category, a normal commute to work and back is not typically considered work time. Travel during the workday, however, is typically considered "work."
Key to remember: Paying employees can be a tricky task for HR professionals. Having a good knowledge base about common challenges can help.