1 More Hour Of Sleep But 4 More Wage And Hour Problems As Daylight Saving Time Ends

On Sunday, November 4, 2018, at 2:00 a.m., daylight saving time will end. This World War I-era practice of turning back the clock one hour in the fall became a federal law in the United States when President Lyndon Johnson signed the Uniform Time Act in 1966. The jury is still out on whether “falling back” is beneficial. Claims that it helps to conserve energy are dubious. Most people probably don't get an extra hour of sleep that night. And, the time change doesn't actually increase the number of hours of sunlight per day. However, it does present a good opportunity for employers to examine their timekeeping practices with regard to nonexempt employees.

As most of us prepare to set our clocks back one hour this weekend, here are a few wage and hour considerations for employers.

1. Does Double Pay Apply for 1:00 a.m. to 2:00 a.m.?

   Employers whose nonexempt employees are in the midst of a shift at 2:00 a.m. on November 4, when that time becomes 1:00 a.m., may be required to pay these employees for one additional hour of work—if, in fact, the time change extends the number of hours actually worked. This is because federal law requires employers to pay employees for all hours worked, and these employees will have essentially worked the hour from 1:00 a.m. to 2:00 a.m. twice (and that “extra” hour will carry over throughout the remainder of the shift). To avoid this, employers could alter the start or end times of these nonexempt employees' shifts on November 4.

2. Employers' Overtime Obligations

   If an employer in the above scenario does pay its nonexempt employees for an additional hour of work, it might be on the hook for overtime compensation as well. That is, the hour from 1:00 a.m. to 2:00 a.m. that equals two hours of work might result in a workweek of over 40 hours or a workday in excess of 8 hours. Employers may need to consider that additional hour of work in determining employees' overtime compensation for the day and week.

3. Regular Rate of Pay

   The Fair Labor Standards Act (FLSA) requires employers to pay employees one-and-one-half times their regular rate of pay for all overtime hours worked. For some employeesthose paid on commission, tipped workers, and employees who receive bonuses, to name a fewthis regular rate is a bit more difficult to determine. Under federal law, an employee's regular rate of pay is the employee's hourly rate for all of his or her nonovertime hours worked in a single workweek. When calculating an employee's...