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An employee is generally entitled to on-call pay if they're so restricted while being on-call that they can't effectively use the time for personal pursuits. Whether or not an employee is entitled to on-call pay depends on a complicated legal analysis that varies based on federal, state, and local laws. On-call pay for nonexempt employees occurs when the employee is paid for the time they spend making themselves available for work. The New York City’s Fair Workweek Law has banned on-call scheduling for retailers because this practice makes it difficult for employees to organize facilities, like childcare.įor businesses that aren’t affected by predictive scheduling provisions, requiring employees to be on-call is a way of preventing over and under-staffing. Being on-call for work means that an employee is available for work and must wait to be contacted by you about whether they need to attend work. Requiring hourly employees to be on-call for work is a popular way to deal with changes in shifts in the retail, hospitality, and fast food industries. If the applicable laws specify different amounts of overtime pay, you must always apply the law that is the most favorable to your employee. You should check federal, state, and local laws regarding nonexempt workers and overtime pay. For more information on predictive scheduling laws, check out this blog post. Some states and cities have passed predictive scheduling laws, also known as fair workweek laws, which requires advance notice of schedule changes be provided to eligible employees.
Break time at work clock software#
The most effective way to track employee time is to use cutting-edge timekeeping software because as a manager, you schedule the number of hours that your nonexempt employees work. The key difference between a nonexempt employee and an exempt employee is the fact that a nonexempt employee is required to track their hours worked and their breaks, and they must be paid overtime pay for overtime hours worked. Exempt employees aren't typically required to track their hours worked, and aren't generally entitled to meal breaks or overtime pay.Ī nonexempt employee, on the other hand, can be paid in a number of different ways - a salary, an hourly wage, piece rate, or commissions. When considering wage and hour requirements, it’s important to understand the distinction between exempt and nonexempt employees.Īn exempt employee has exempt job duties and generally receives a predetermined salary which doesn't fluctuate based on the number of hours worked or the quality of work. Not sure where to start? Here are some keywords for employee time recording that you should know: Implementing a workforce management system that includes advanced time clocking and tracking functions is one key way to help you accurately track your employees’ straight time and overtime hours worked, meal and rest breaks, and entitlement to premium payments when required. In fact, good timekeeping practices are critical for compliance with federal, state, and local wage and hour laws and regulations. Complying with time clock best practices for your nonexempt employees is key to operating a successful business.