Daylight Savings Time and Wage and Hour Compliance

For employees working the graveyard shift, this weekend could be a bit longer than normal. With the exception of Arizona and Hawaii, Daylight Savings Time ends this Sunday, November 3rd at 2 AM local time for all U.S. states. At this time, thetime-371226_1280 clocks will roll back to 1 AM and repeat the hour. If you have employees that work at that time, your payroll liability will likely be higher than on a typical work day because of the additional hour worked unless scheduling modifications are made.

Because we are gaining an hour, if an employee is scheduled from 10 PM to 7 AM with an hour lunch, instead of being paid for 8 hours they would need to be paid for 9 hours of work. If you want to keep the schedule as is and pay them for the extra hour, this may mean paying overtime if that employee is non-exempt and working more than 40 hours during the work week (In California the employee would need to be paid overtime if the additional hour of work put the employee over 8 hours of work in a workday). Another option would be to change the employee’s schedule so that they are working an hour less, meaning that they would be paid for their regular 8 hours.

For tipped employees and employees that receive bonuses or commissions, keep in mind that this extra hour will need to be factored in when determining the employees’ regular rate of pay as this can affect their overtime rate.