HOLIDAY PAY. 4. Holiday premium pay Time and a half pay for hours actually worked on a holiday by nonexempt

Transcription

1 HOLIDAY PAY I. ORDINANCE PROVISIONS Sec of the Personnel Ordinance says: Employees of the Town called in or required to work on any designated Town holiday shall receive either hours off equal to one and a half times hours worked or, for non-exempt employees only, pay for the hours worked at one and a half times their normal rate of pay. They will also receive pay for the holiday itself at straight time rates. Paid leave and hours worked within the pay period have no effect on employee eligibility for this holiday premium for hours worked on the holiday. Provided, however, that the Manager may develop specific policies on holiday compensation for employees working 24 hour rotating shifts. (See IV, Rotating 24-hour Shift Employees.) II. DEFINITIONS 1. Holiday refers to one of the 11 days designated as Town holidays. If the actual date of a holiday falls on a Saturday, the holiday, for purposes of this policy, is the preceding Friday. If the holiday falls on a Sunday, the designated Town holiday will be Monday. However, Departments may choose to designate a different day as a Town holiday for the whole department or a division within the department, if this would be more equitable for the majority of the employees within the unit for which the designated holiday is changed. For example, designated holidays might be changed so that employees working weekend Christmas holidays December 24 and 25 would receive the holiday compensation rather than the employees working December 23 and 26, the date of the Town observance of the holiday. 2. Eligibility for Holiday Pay/compensatory time Regular part and full time employees may receive Holiday premium pay or Holiday premium compensatory time. 3. Exempt and Non-exempt refers to an employee s status under the federal Fair Labor Standards Act and the employee s eligibility to earn overtime. An exempt employee is not eligible for overtime. A non-exempt employee is eligible for overtime. 4. Holiday premium pay Time and a half pay for hours actually worked on a holiday by nonexempt employees. 5. Holiday premium compensatory time Time and a half compensatory time for hours worked on a holiday by exempt employees or by non-exempt employees who choose this option. Holiday premium compensatory time must be used within a year after the holiday. If it is not used, it is added to sick leave for exempt employees and either added to sick leave or paid for non-exempt employees. Section 2, policy # 3 Page 1

2 6. Holiday straight time The holiday itself is paid at straight time, whether or not work is performed or scheduled on that day. Rules for determining the amount of straight time pay are as follows: time equivalent to average workday, time equivalent to scheduled hours or time equivalent to hours actually worked on the holiday, whichever is greater. III. POLICY/PROCEDURE NON 24 HOUR ROTATING SHIFT EMPLOYEES 1. If Time is Worked on the Holiday The employee receives time and a half for hours worked, plus straight time for the holiday. The amount of straight time for the holiday is equivalent to scheduled hours, hours worked or average work hours, whichever is greater. (a) Non-exempt employees: It is the non-exempt employee s right to receive pay for the time worked and also for the holiday. However, if the department and the employee agree, the time worked can be saved as holiday premium compensatory time. Example: A non-exempt employee with a regular eight hour work-day works Good Friday, a designated Town holiday, for 6 hours. That employee earns eight hours of straight time for the holiday and 6 hours at time and a half for hours worked on Good Friday. If the department and the employee agree, the time worked can be saved and used later at time and a half time instead of pay (9 hours of time off for 6 hours worked). (b) Exempt employees The same rules apply to most exempt employees but they receive time and a half compensatory time instead of pay. Department heads do not receive time and a half compensatory time. 2. If No Work is Performed on the Holiday (a.) If the holiday falls on a scheduled workday A holiday falling on a normally scheduled work day is paid at straight time for the number of hours scheduled for that day or for the number of hours in an employee s average workday, whichever is greater. If the employee is on paid leave when the holiday occurs, holiday time, not sick or vacation or other leave, must be charged. Example: A Library employee works an irregular schedule, totaling 37.5 hours per week. The employee is off on Friday, Christmas Day, when she is normally scheduled to work 8 hours. The employee receives 8 hours of straight time, although her average workday is 7.5 hours, because she was scheduled for 8 hours on that particular day. (b) If the holiday falls on the employee s normal day off: A holiday falling on the employee s day off is credited as time the employee can take off later, or choose to transfer to his or her sick leave balance and is equivalent to the employee s average Section 2, policy # 3 Page 2

3 workday. If the holiday is not used within a year, it will be added to the employee s sick leave balance and may no longer be used as time off. Departments may require banked holidays to be used before vacation leave. 3. Coordination With Overtime Straight time holiday hours are not added to overtime. They are treated the same as sick or annual leave. Hours worked on a holiday are also not added to overtime. They are paid at time and a half without regard to other hours worked. Example: An employee works 45 hours Monday through Thursday and then works 8 hours on the Friday holiday. He is paid 5 hours time and a half for hours worked preceding the holiday and 8 hours at time and a half for hours worked on the holiday. This is the same amount of time and a half pay that the employee would have received whether or not there was a holiday. However, if the employee worked only 10 hours on the days preceding the holiday, and took vacation for the rest, he would still be eligible for 8 hours at time and a half for 8 hours worked on the holiday. This is in contrast to our overtime policy, under which the employee would receive no time and a half because there are an insufficient number of hours actually worked. See an additional example in ATTACHMENT A. 4. When is an employee working the holiday? For most employees, any work that takes place on the designated holiday qualifies as time worked on a holiday and will be paid at time and a half or support compensatory time at time and a half. For 12-hour shift employees, a night or day shift beginning on the holiday is considered time worked on the holiday. However, a shift which begins before the holiday is not considered time worked on a holiday. IV. POLICY AND PROCEDURE: 24-HOUR ROTATING SHIFT EMPLOYEES 1. If Time is Worked on the Holiday (a) Non-exempt employees: If the non-exempt employee works 24 hours, he or she receives 24 hours for the hours worked plus a 6 hour holiday pay premium, based on extra half time for a 12 hour average work-day. In addition, he or she receives 12 hours of straight pay for the holiday. (The holiday pay premium is prorated. For example if the employee works only 12 hours, the amount of premium pay is 3 hours.) It is the non-exempt employee s right to receive pay for the time worked and also for the holiday. To receive pay for the holiday and the premium pay, the employee should request payment within the same 28-day cycle. Otherwise the 12-hour holiday and the holiday pay premium will be saved as time to be taken off later. Banked holidays are taken off before other types of leave, and must be used within 364 days or added to sick leave. (b) Exempt Employees Exempt 24-hour employees working the holiday receive the same number of hours as non-exempt Section 2, policy # 3 Page 3

4 employees, but as time to be taken off or added to sick leave rather than paid. 2. If no work is performed on the holiday (a.) If the holiday falls on a scheduled workday A 24-hour rotating shift employee uses 12 hours of holiday leave and 12 hours of annual or other appropriate leave, if in leave status on a holiday. (b) If the holiday falls on the employee s day off: A holiday falling on the employee s day off is time the employee can take off later, and is credited at 12 hours. Banked time must be used within a year of the holiday or added to sick leave.. 3. Coordination With Overtime Straight time holiday hours and holiday premium hours are not used in the computation of overtime. Hours worked on a holiday are used in the computation of overtime. This is in contrast to the policy for other employees, and is based on the fact that unlike other Town employees, 24-hour shift rotating personnel are not paid time and a half for all hours worked on a holiday. If hours worked on a holiday were not used in the computation of overtime, it would be possible for one of these employees to lose money by working the holiday instead of some other day. 4. When does a holiday begin? If work begins within the 24 hours of the designated holiday, the employee is considered to be working the holiday for his or her shift. ATTACHMENT A Examples of holiday pay ATTACHMENT B Examples of Holiday Pay for 24-hour Rotating Shift Employees Section 2, policy # 3 Page 4

5 EXAMPLES OF HOLIDAY PAY (non-24 hour rotating shift employees) ATTACHMENT A 1. WORK IS PERFORMED ON THE HOLIDAY An employee with a regular 5-day 40 hour workweek works 5 hours on Monday, Martin Luther King Day, and 8 hours for each of the other 4 days. He receives 5 hours time and a half holiday premium pay and 40 hours straight time. This includes 5 hours of time and a half for hours worked on the holiday, 8 hours straight time for the holiday and 32 hours straight time for the remaining days worked. Another employee with the same schedule works 12 hours on Martin Luther King Day and 35 hours total the other 4 days. The employee receives 12 hours at time and a half and 47 hours at straight time. This includes 12 hours holiday premium pay for hours worked on the holiday, 12 hours straight time for the holiday itself and 35 hours straight time for the regular hours worked. He receives 12 hours of straight time for the holiday because he worked 12 hours, and the holiday is equal to scheduled hours (8), average workday (8) or hours worked (12 in this case), whichever is greater. A part time employee who normally works 30 hours a week and is usually scheduled for 7 hours on Monday works 4 hours on the Monday Labor Day holiday. She works the rest of the week as usual. The employee receives 4 hours at time and a half and 30 hours at straight time. This includes 4 hours of holiday premium pay for the 4 hours worked on the holiday, 23 hours for hours worked on non-holiday days, and 7 hours straight time for the holiday. The straight time for the holiday is equal to scheduled hours (7), which in this case is greater than the hours worked on the holiday (4) and greater than her average work day (6). An employee who normally has Wednesday off works 6 hours on New Year s Day on a Wednesday. She worked 10 hours a day on Monday, Tuesday, Thursday and Friday and has an average workday of 8 hours. The employee receives 6 hours at time and a half and 48 hours of straight time, including 6 hours at time and a half for time worked New Year s Day, 40 hours at straight time for hours worked on the other 4 days and 8 hours of straight time pay for the holiday (based on average work hours (8) which exceed the hours worked on the holiday (6)). A part time employee who normally doesn t work on Monday works 7 hours on the Martin Luther King Day holiday, plus his regular schedule. His regular workweek is 30 hours worked on Tuesday through Friday, and his average workday is 6 hours. The employee receives 7 hours at time and a half for hours worked on the holiday, 30 hours of straight time for hours worked the other days and 7 hours of straight time for the holiday. In this example the hours worked on the holiday (7) were greater than the employee s average work hours (6). Section 2, policy # 3 Page 5

6 Coordinating With Overtime An employee with a regular 40-hour workweek works 8 hours on the holiday and 40 hours the rest of the week. She receives 8 hours at time and a half as holiday premium pay for the hours worked on the holiday, 8 hours straight time for the holiday itself and 40 hours of straight time for the other hours worked. (The question that has been raised is why doesn t she also receive extra half time for the 8 hours worked over 40? In this example the employee receives the same rate for working on a holiday as she would for working on a non-holiday. Since the employee makes out better with holiday premium pay than with normal overtime in the vast majority of cases, and never receives less than he or she would receive under the Fair Labor Standards Act governing payment of overtime, we are choosing not to double pay overtime.) An employee with a regular 40-hour workweek works 6 hours on Monday, which is a holiday, and 43 hours on Tuesday through Friday. He receives 6 hours of time and a half holiday premium pay for work performed on the Monday holiday, 3 hours at time and a half for overtime hours worked Tuesday through Friday, 40 hours of straight time for hours worked Tuesday through Friday and 8 hours of straight time for the holiday. In this example, the employee is eligible for 3 hours of overtime as well as holiday premium pay because he worked over 40 hours on days other than the holiday. 2. NO WORK IS PERFORMED ON THE HOLIDAY A part time employee with a normal 25-hour workweek usually works 8 hours on Monday. However, his facility is closed for the Memorial Day holiday. The employee receives 8 hours of straight time pay for the Monday holiday. In this example, scheduled hours (8) exceeded the employee s average workday hours (5). Pay is received, rather than time to take off later, because this is a regularly scheduled workday even though no work is performed. An employee is scheduled to work Sunday through Wednesday. Thursday and Friday are his normal days off and are also the Thanksgiving holidays. Since no work is performed and no work is scheduled, the hours are credited as time to be taken off later or added to sick leave, and the hours credited are based on the employee s average workday. Section 2, policy # 3 Page 6

7 ATTACHMENT B EXAMPLES OF HOLIDAY PAY FOR 24-HOUR ROTATING SHIFT EMPLOYEES 1. WORK IS PERFORMED ON THE HOLIDAY An employee works 24 hours on the designated holiday for Memorial Day. He receives 12 hours straight time pay for the holiday, 24 hours straight time for hours worked, and 6 hours premium pay. If he wishes to receive pay for the 6 hours premium pay and the 12 hours holiday straight time, he must request it in the current 28-day cycle. Otherwise it must be used as time off within a year from the holiday. An employee works only 12 of her scheduled hours on the Labor Day holiday. She receives 12 hours straight time pay for the holiday, 12 hours straight time for hours worked and 3 hours premium pay or time to be taken off later. An employee is held over for 12 hours on a holiday for which he was not scheduled to work. He receives 12 hours straight time pay for the holiday, 12 hours straight time for hours worked and 3 hours premium pay. (If he wishes to be paid for the holiday and the 3 premium pay hours instead of taking time off later, he must request it in the current 28-day cycle.) However, if overtime would have been incurred under normal rules and regulations by the work performed on the holiday, it will be paid as well as the holiday premium pay. Coordination With Overtime An employee works a full shift on a holiday that falls on a day when he is not scheduled to work. The employee receives at least 24 hours of straight time for hours worked, 12 hours of straight time for the holiday and 6 hours of holiday premium pay. He may receive time and a half for some or all of the 24 hours worked, in accordance with the Town s policies and with the Fair Labor Standards Act. 2. NO WORK IS PERFORMED IN THE HOLIDAY An employee is on leave for the period during which a holiday occurs. The holiday falls on an on-duty day for her shift. The employee must use leave for the 24 hours, including 12 hours of holiday leave. If a holiday falls on the employee s day off and no work is performed the employee receives 12 hours of straight time to take off at a later date. This time must be used within a year. Section 2, policy # 3 Page 7