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Texas Law on personal time and OT Texas

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  • Texas Law on personal time and OT Texas

    An employee works Mon-Thursday and would have 2 hrs of overtime by working Friday. They had previously requested a personal day for Friday. Can the employer only use 6 hrs of the personal time to total 40 hrs instead of paying 42 straight time? Another example: Employee works 3.42 hrs on Saturday, calls in ill on Monday. Employer adjusts the 8 hrs of personal time entered on Monday on Friday when employee was going to have over 40 hours. Since the employee missed a day, I know the extra time is not OT but shouldn't they be entitled to straight time?

  • #2
    An employer only ever has to use time actually worked by an employee when calculating overtime pay. Paid personal time, vacation time, holiday pay, paid sick time, etc. does not "count" towards calculating overtime unless the employer chooses to do so. (Nor does an employer have to provide any of those paid time off benefits either.)

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    • #3
      Originally posted by lisa5673 View Post
      They had previously requested a personal day for Friday. Can the employer only use 6 hrs of the personal time to total 40 hrs instead of paying 42 straight time?
      I had to read this several times before I understood.

      Frankly, unless the employee wanted to be paid 34 hours regular and 8 personal, I would go for the 34 and 6, allowing the employee to keep two hours in the bank. But if the employee wanted 34 and 8, I would pay that.

      It does not make a big difference one way or the other in my state, since vacation must be paid out if the employee is fired or quits. It COULD make a difference in other states where the laws don't require payout of vacation or limit the conditions. In those cases, it would be beneficial for the employer to pay only 34 and 6.
      Senior Professional in Human Resources and Certified Staffing Professional with over 30 years experience. Any advice provided is based upon experience and education, but does not constitute legal advice.

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      • #4
        I am sorry I could not make it easier to understand. The employees do not know this is being done. They clock in and out on a computer time clock. They only have access to see the number of hours not make any changes. The boss goes in each day and deducts the lunch hour for each employee and at that time checks for OT. Since they guarantee them 40 hours, they will send them home early so that no OT is accumulated. I know that personal, vacation and holidays do not apply to OT but just wanted to make sure that the employees were not getting short changed in hours worked by having their personal time ammended. Thank you for the responses.

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        • #5
          It is however, legal to readjust the schedule to disallow OT and to only charge PTO to bring the employee to 40 hours a week. The only problem is if employees aren't being paid for all the time they do work.
          I post with the full knowledge and support of my employer, though the opinions rendered are my own and not necessarily representative of their position. In other words, I'm a free agent.

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          • #6
            ElleMD is absolutely correct!

            One thing to keep in mind is that businesses run on budgets. One way to control your payroll budget is to reduce overtime expenses. It's quite common in the retail sector and restaurants to "readjust" work schedules to avoid this.

            I realize each story has two sides. The above is one of the prevailing business concerns for managers as his/her job may be on the line if budget goals are not realized.

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            • #7
              In Texas, employers are allowed to set their timeoff policy.

              Our timeoff policy was that paid timeoff can only be taken in full days. Our company policy is that if you take more than 4 hours off in one day (work less than 4), even if you work overtime at another time during the week, you are charged (and paid for) a whole day of time off.

              We have tweaked it to the point that we do allow some "short days" without having to take a whole day (for example work 6 hours, off 2 hours don't get charged a day), but the employee doesn't get paid for the hours not worked on a short day (so they would not get paid for those 2 hours and their timeoff bank would not get charged).

              So in your first example, we would pay 42 hours at regular time.

              It does get a little confusing trying to type it out...but it works to keep our employees consistently working full days because they don't want to "loose" the value of a day off for just a few hours off.

              rr

              eta: this does mean we often pay over 40 regular hours... Again for us it is more about employee consistency than not going over bugdet/OT hours.
              hr for me
              Senior Member
              Last edited by hr for me; 02-20-2007, 11:45 AM.

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              • #8
                That would be your company policy though, not the law.
                I post with the full knowledge and support of my employer, though the opinions rendered are my own and not necessarily representative of their position. In other words, I'm a free agent.

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                • #9
                  Yes, definitely our company policy not Texas law. I was just trying to show an example of a company that does calculate timeoff the way the OP suggested.

                  rr

                  Comment

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