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Move PT EE's to Exception Hourly

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  • Move PT EE's to Exception Hourly

    This is for all states. What are the ramifications of moving a population of part time ee's that submit their time manually to payroll.... to now be exception hourly, so that their time is automatically created when payroll is created. Is there any issues with moving a population of ee's that have submitted their time manually, as they are considered part time to now they only submit time manually if they go above and/or beyond their standard work hours? They would now be getting an automated paysheet with their standard hours paid to them on a biweekly schedule. Any help/suggestions would be appreciated.

  • #2
    The starting point is to recognize that "exception hourly" is a phrase that your company made up and has no legal weight. If you are talking about pretty much any type of employee other then Exempt Salaried, then you (the employer) is legally required to keep time accounting records and are legally required to pay based on actual hours worked. If your "exception hourly" system can meet the legal requirements, you are fine. If it cannot, you are not fine. I can say that there are a whole lot of court decisions that say when the employer chooses to not keep accurate time accounting records that the court will tend to assume that the employee's claims are correct.

    If I was one of your employees who had terminated, why not file a wage claim for unpaid time and make the argument that "exception hourly does not equal accurate time accounting records? The employee literally has nothing to lose by making such a claim. The advantage of time clocks or timesheets prepared by the employee is that courts are used to seeing these and all issues have pretty much been worked out. The same can not be said for your "exception hourly" system. I have used exception systems in the past, but they work better for full time employees with very predictable hours (excluding OT).
    "Reality is that which, when you stop believing in it, doesn't go away".
    Philip K. **** (1928-1982)

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    • #3
      I paid many of my non-exempt staff in an exception hourly method, but they still had to submit timesheets every pay period. For us exception hourly just made it easier to enter it into payroll and didn't require us to key in hours each week. You still need the time records to back it up.

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      • #4
        Thanks for the feedback. Let me provide a bit more info to see if I can explain it better. Currently we have an application, where EE's that are Hourly or Non-Exempt log in and enter the time they worked either for their standard work hours or for OT they worked and it is fed over to the payroll system. What is being proposed... for those Part Time ee's that work a standard work week, can we just enter those standard hours in the payroll system to create a check for them instead of them submitting their time via this system. Then they would enter any OT or PT hours over an above their standard hours. They way we would be able to do this systematicaly would be to place these "Hourly or Non-Exempt" type ee's to an "Exception Hourly" type ee in the system. To change these ee's to this type will automatically create their paychecks with standard hours.

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        • #5
          You are required by law to keep an accurate record of all the hours worked by non-exempt employees. Where, in this method, would this record be?
          The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

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