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PTO is a benefit, not to be used as a wage!! I know it works to your advantage to strongly suggest that MTs use PTO when there is no work, but there are some who will NEVER do that. Suggest it, yes, but expect it? How would you like to use your PTO as part of your wage?
February 18th, 2011
Posted by Amelia
During inclement weather, many offices and businesses will close early. While last week’s post examined payment when the business is closed or remains open all day, different rules apply when the employer opts to close the workplace early.
Many states have reporting pay laws that guarantee an employee payment for a minimum number of hours when the employee reports for a scheduled shift. In those states, even if the employee works only 5 minutes, or reports to work but does no work at all, the employee is entitled to a minimum payment.
There is no requirement for reporting pay under federal law. The federal FLSA or Fair Labor Standards Act requires only that employees be paid for time worked.
Laws vary from state to state, but many times reporting pay is not required if the employer made a good-faith effort to inform the employee in advance that the business would be closed or that the employee’s schedule has been changed. Many states also exempt employers from reporting time pay when a business is closed due to an act of God, as when a tornado or flood destroys the building.
According to SHRM, the Society for Human Resource Management, seven states plus the District of Columbia have reporting time pay laws that affect adults: California, Massachusetts, Connecticut, New Hampshire, New York, New Jersey and Rhode Island. Oregon has a reporting time pay that applies to minors only.
A brief summary of reporting time pay laws by state:
Oregon requires that employees under the age of 18 be paid for half of their scheduled shift, or one hour at their regular rate (whichever is more.) This law does not apply to employees over the age of 18. This is referred to as the “adequate work rule” meaning the employer has to provide adequate work when the minor employee is scheduled.
California requires that an employee be paid for 50% of the scheduled shift at the regular rate, but not less than 2 hours nor more than 4 hours. Time the employee works can be included in this total. Example: Fred is scheduled to work 8 hours but works only one hour before the business closes due to high winds. Fred is entitled to payment for a total of 4 hours, including the hour that he worked. Reporting pay also applies if the employee is called back to work after finishing a shift. The employee is entitled to an additional 2-4 hours pay for the second shift, even if she works only a few minutes. The California reporting time provisions are part of the Industrial Wage Orders, and can vary by industry. Hours of reporting time pay are not counted towards overtime.
Massachusetts’ “three hour rule” requires that when an employee is scheduled for a shift of three hours or more, he or she is entitled to payment for at least three hours at the minimum wage. An employee scheduled for less than three hours is not entitled to reporting pay. There is an exception for non-profit organizations.
Connecticut wage orders require reporting time pay for workers in some industries. For example, a laundry worker must be paid a minimum of 4 hours at the regular rate when reporting for a scheduled shift, even if no work is available. An employee in the Restaurant or Hotel Industry must be paid for a minimum of 2 hours at the regular rate, unless the employee was notified the day before that she was not needed.
New Hampshire requires that the employee be paid for two hours at her regular rate of pay.
New Jersey requires that an employee be paid for a minimum of one hour at her usual rate, unless the employee has already worked the agreed-upon hours for the week.
New York requires that the employee be paid for the scheduled shift up to a maximum of four hours. This payment may be at the applicable minimum wage.
Rhode Island requires that an employee be paid a minimum of three hours at the regular rate whenever the employee reports to work. This also applies to regularly scheduled shifts that are less than three hours – an employee who is scheduled for two hours must be paid for a minimum of three hours.
The District of Columbia requires that the employee who reports for a scheduled shift be paid for her regular shift, or for four hours, whichever is greater. Payment for reporting time can be at the minimum wage, rather than at the employee’s regular rate.
The remaining states including Alaska, Alabama, Virginia and Texas allow the employer to pay workers only for time worked. In those states, an employee who reports for a scheduled 8-hour shift and only works 15 minutes, need be paid only for 15 minutes.
In some states such as Illinois, an employer may be required to pay an employee for time not worked under a wage agreement that specifies the employee will be given a minimum number of hours each week.
Reporting time rules apply to nonexempt employees only. Generally, an exempt employee who is ready, willing and able to work must be paid his or her usual salary for the day, even if no work is available. There are exceptions under the federal FLSA for exempt employees on FMLA or who are being granted an accommodation under ADA.