Can an employee collect 1.5 pay for overtime worked while they are on vacation? Here is the example. It is a 24/7 coverage job. Three 8 hour shifts per day, we'll say they are shifts "A" "B" & "C". Employee from shift B is on vacation and signed up to work overtime on shift C. Does he get time and half pay or does the employer pay him normal hourly pay and give him his vacation day back?

Employee B said jokingly that he would work the overtime caused by him on shift B and the boss said no, that would be "double dipping". The boss further says that employee C, while on vacation for his shift C, can work overtime on shift B. Does that sound right ?

Vacation time is not time worked.

No employee in any state is owed overtime at time and a half or any other rate unless they actually WORK more than 40 hours in a work week. There are a few states that require daily overtime for working more than eight, ten, twelve hours in a work day, but NJ is not one of those.

The person taking vacation, but working a different shift during that week, need be paid only whatever he and the employer agree will be paid for the time worked (so long as it equals or exceeds minimum wage).

So the boss is technically not required to pay overtime but could if wanted too? Or can the employee not recieve overtime under this circumstance?

So the boss is technically not required to pay overtime but could if wanted too?

The company is not legally required to pay anything above minimum wage. The company may pay more. If it wanted to pay time and a half for the employee's regular rate of pay, no law would stop that. It would make sense if the only other alternative to filling the shift was to have someone working for more than what it would cost for this employee.

There is no legal requirement on the employer to count paid time off as hours worked. There is legal requirement stopping the employer from counting paid time off as hours worked.

The same thing could be said about the employer having (or not having to) pay overtime because the employee has wearing a red shirt or having a dog named Spot. Like paid time off, these events are equally unrelated to the actual overtime laws (http://www.dol.gov/esa/regs/compliance/whd/whdfs23.pdf).

Having said all this, however, if the employer chooses to count vacation hours as hours worked for purposes of calculating overtime OR chooses to pay a premium for shift A employees working shift B while on vacation, the employer is certainly allowed to do that.

However, since the idea of a "vacation" is to rest, relax, and recharge, I'm wondering why the employer is even letting vacationing employees work another shift. In that case, what's the point of vacation? :confused:

what's the point of vacation? :confused:

Cash.

I have had more than a few employees cash in vacation while working a full week (and begging for overtime) to pay for unexpected outlays, such as major car repairs.

I do agree with your point, Patty. Actual time off is good and the vacation allows the employee to get refreshed while not losing any money. With the price of gas today, I doubt many will be interested in taking a vacation, even if they could afford it.:( Bad news for my state, where the #1 industry is tourism. (Legislators have buried their heads in the sand and claim that we won't be affected -- some serious strong weed they have in the Capitol building).

Oops, sorry, I am highjacking the thread.

Right on. The employer may pay for vacation not actually taken AND pay whatever rate of pay agreed upon so long as it meets or exceeds minimum wage. Unless the employee is desparate for the cash right now, it makes sense to continue to work on whatever shift and save the vacation for the future, particularly since his/her rate of pay is likely to go up and that will increase the value of the accrued vacation.

So then could the employee from shift B work the overtime caused by him being on vacation? or does the fact that it is his shift make all the difference?

It doesn't make any difference what shift it is. Overtime is due on hours WORKED, not on hours PAID.

It doesn't make any difference what shift it is. Overtime is due on hours WORKED, not on hours PAID.

OK, I understand that. But in this instance both employees are on paid vacation leave and the boss says one is permitted to work the others shift on overtime just because it is different shift.
B & C are both on vacation, B can work C's shift because it is a different shift, however B was denied the overtime on B shift though eligible on our OT list because his vacation is the cause of the overtime.

Sorry for many questions and rephrases, just want to make sure.

So then could the employee from shift B work the overtime caused by him being on vacation? or does the fact that it is his shift make all the difference?

One more time.

Overtime is owed for hours WORKED. Vacation is not work time. I don't care what shift, what day of the week, how many hours in a row (with the exception of the very few states that have daily overtime laws).

And the employer can allow anyone to work whatever shift they want.

The LAW is not going to require overtime, EVER, unless the employee has WORKED over 40 hours a week (daily overtime states excepted).