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CCH Says Daylight Saving Can Change Paychecks
(RIVERWOODS, ILL., February 20, 2007) – For most people, the “spring-forward, fall-back” rules of daylight saving time just mean gaining or losing an hour of sleep, but for some shift workers and their employers, there can be dollars-and-cents consequences, notes CCH, a part of Wolters Kluwer Law & Business and a leading provider of human resources information and software (hr.cch.com).
The arrival of daylight saving time requires clocks to be moved forward one hour at 2:00 a.m. on March 11. Shift workers who are on duty at that time and who normally work an eight-hour shift will actually work only seven hours.
“As a matter of policy, employers may decide to pay the normal eight hours of pay for that shift, but under the Fair Labor Standards Act, they are not required to include the additional hour of pay when calculating an employee’s regular rate for overtime,” noted Heidi Henson, CCH workplace analyst. “For example, if someone actually works 40 hours in the week, the additional hour’s pay for that daylight-saving hour would be at straight time, not overtime,” Henson explained.
On the other hand, because the extra hour of pay is not compensation for hours actually worked in the work week, no part of that amount may be credited toward overtime compensation that may be due if the employee qualifies for overtime during the rest of the work week.
“Let’s suppose an employee actually works 41 hours in the week, and is also paid for the hour that isn’t worked due to daylight saving. That employee is still entitled to overtime pay for one hour, and the pay for the daylight-saving hour can’t be credited against it,” Henson added.
When returning to standard time on the first Sunday in November, clocks are moved back one hour at 2:00 a.m. Shift workers on duty at that time will actually work an extra hour, for a total of nine hours of work. Employees must be paid for all nine hours. They are also entitled to overtime on the basis of all hours worked during the week, including the extra hour worked during the conversion to standard time.
About Wolters Kluwer Law & Business
Wolters Kluwer Law & Business is a leading provider of research products and software solutions in key specialty areas for legal and business professionals, as well as casebooks and study aids for law students. Its major product lines include Aspen Publishers, CCH, Kluwer Law International and Loislaw. Its markets include law firms, law schools, corporate counsel and professionals requiring legal and compliance information. Wolters Kluwer Law & Business, a unit of Wolters Kluwer, is based in New York City and Riverwoods, Ill.
Wolters Kluwer is a leading global information services and publishing company. The company provides products and services for professionals in the health, tax, accounting, corporate, financial services, legal and regulatory, and education sectors. Wolters Kluwer has annual revenues (2005) of €3.4 billion, employs approximately 18,400 people worldwide and maintains operations across Europe, North America, and Asia Pacific. Wolters Kluwer is headquartered in Amsterdam, the Netherlands. Its shares are quoted on the Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices. For more information, visit www.wolterskluwer.com.
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