Overtime Payment Schedule

Purpose

To outline the procedures and guidelines for compensating employees for overtime work in compliance with Pennsylvania State Labor Laws, Federal Labor Laws, California State Labor Laws, Maine State Labor Laws, Louisiana State Labor Laws, Missouri State Labor Laws, and Illinois State Labor Laws.

Policy

Overtime Definition

• Pennsylvania Employees: Overtime is defined as any hours worked over 40 hours in a normal pay period. Exceptions include travel, layover, vacation, PTO, sick, personal, holiday, and bereavement pay.
• California Employees: Overtime is defined as any hours worked over 8 hours in a workday or 40 hours in a workweek. Double time is required for hours worked over 12 hours in a workday or over 8 hours on the seventh consecutive day of work in a workweek.
• Maine Employees / Louisiana / Missouri / and Illinois Employees: Overtime is defined as any hours worked over 40 hours in a workweek. Overtime is compensated at a rate of 1.5 times the employee’s regular pay rate.

Approval Process

• All overtime hours must be approved by the employee’s manager prior to initiation. • Unauthorized overtime will not be compensated.

Overtime Compensation

• Pennsylvania Employees: Overtime will be compensated at a rate of 1.5 times the employee’s regular pay rate for hours worked over 40 in a pay week, excluding holiday worked hours. Layover time is not considered hours worked and is not eligible for overtime pay. However, travel time that exceeds 40 hours in a workweek will be compensated at 1.5 times the employee’s regular pay rate.

  • Travel Pay Details: Travel time includes any time spent traveling for work-related purposes outside of the employee’s regular commute. This includes travel to different work sites, travel for training, and travel for business meetings. Travel time is calculated from the time the employee leaves their home or primary work location until they arrive at the destination, excluding normal commute time. If travel extends beyond the employee’s regular work hours, the additional travel time will be considered for overtime calculation.
• California Employees: Overtime will be compensated at 1.5 times the regular pay rate for hours worked over 8 in a workday and over 40 in a workweek. Double time will be paid for hours worked over 12 in a workday and over 8 on the seventh consecutive day of work in a workweek.
• Maine/ Louisiana / Missouri and Illinois Employees: Overtime will be compensated at a rate of 1.5 times the employee’s regular pay rate for hours worked over 40 in a workweek.

Salary Employees

• Salaried employees are generally not eligible for overtime pay unless specified for special projects.

Remote Work Policy

• Due to the hands-on nature of our business, remote work is not permitted. All employees are required to perform their duties on-site to ensure operational efficiency and maintain the quality of our services.

Consequences for Policy Violations

• Unauthorized Overtime:

  • General: Employees who work unauthorized overtime will not be compensated for those hours. Repeated violations may result in disciplinary action, up to and including termination.
  • California Employees: Due to California labor laws, employees who work unauthorized overtime must still be compensated for those hours. However, repeated violations of the overtime approval process may result in disciplinary action, up to and including termination.

  • Examples of Unauthorized Overtime:

    • An employee stays late to finish a project without prior approval from their manager.
    • An employee comes in early to start work without notifying their supervisor.
    • An employee works through their lunch break without informing their manager.
• Falsification of Timesheets: Any employee found falsifying their timesheet to claim unworked overtime hours will face disciplinary action, which may include termination and potential legal action.
• Non-Compliance with Remote Work Policy: Employees who violate the remote work policy by attempting to work remotely without approval will be subject to disciplinary action, which may include suspension or termination.

Procedures

Requesting Overtime

• Employees must submit an overtime request form to their manager for approval.
• The manager will review and approve or deny the request based on operational needs.

Recording Overtime

• Approved overtime hours must be accurately recorded on the employee’s timesheet.
• Timesheets must be submitted to the payroll department by the end of the pay period.

Payment of Overtime

• Overtime pay will be included in the employee’s regular paycheck for the pay period in which the overtime was worked.
• The payroll department will calculate and process overtime pay according to the approved timesheets.

Compliance

• This policy complies with Pennsylvania State Labor Laws, Federal Labor Laws, California State Labor Laws, Maine State Labor Laws, Louisiana State Labor Laws, Missouri State Labor Laws, and Illinois State Labor Laws regarding overtime compensation.
• Any changes to this policy will be communicated to all employees in a timely manner.

Effective Date

• This policy is effective as of November 01, 2024

Review and Amendments

• This policy will be reviewed annually and amended as necessary to ensure compliance with applicable laws and regulations