The first weekend of the month of November is almost upon us, and for most of us it's time for the annual turning back of the clock to signal the end of daylight saving time. Other than getting an extra hour of sleep on Sunday, November 3, the return to standard time means that you must make sure that your employees working during the overnight time change are paid correctly.
When clocks are turned back an hour in the early morning, workers on duty at that time will actually work an extra hour. Assuming that these workers are nonexempt employees, meaning that they are governed by the Fair Labor Standards Act (FLSA), the federal law that governs wages and hours, they must be paid for all hours worked.
Example
Kasey and Kelly work the eight-hour overnight shift from 10 p.m. Saturday night to 6 a.m. Sunday morning at the Creative Cakes Bakery getting ready for the early Sunday morning rush. They will both be at work at 2 a.m. on November 3, when daylight saving time ends, and the clocks are turned back an hour to 1 a.m. Therefore, Kasey and Kelly will actually work a nine-hour shift rather than their usual eight-hour one and must be paid accordingly.
The end of daylight saving time can have overtime pay implications as well. Generally, nonexempt employees are entitled to overtime pay for all hours in excess of 40 worked during the week. Employees who work an extra hour during the conversion to standard time may be over the 40-hour mark for the workweek and thus entitled to the higher overtime pay rate for that time.
Making sure your workers are paid correctly during the change to standard time avoids payroll complications that can lead to fines and penalties for noncompliance with wage and hour laws. And knowing that your payroll duties are taken care of can help you enjoy that extra hour of sleep on the weekend!
