How to calculate
What is regular time?
Regular time refers to the typical work hours of employees, excluding additional labor hours such as overtime. Importantly, regular time refers only to non-exempt employees, who are expected to work a set number of hours per pay period and are entitled to overtime pay if those hours are exceeded. Hours worked by salaried or exempt employees are not included in regular time.
Regular time should be calculated for all employees with regular status. It's important to keep in mind that regular employees may be either full-time or part-time workers. In the US and internationally, full-time is generally considered to be 40 hours per week, although employers have some leeway when it comes to stipulating what counts as full-time and part-time hours.
Some countries have different standards for what constitutes full-time employment. In France, for example, 35 hours is considered full-time employment, with anything extra warranting overtime pay.
Also keep in mind that regular employee status is not granted to employees hired temporarily, such as seasonal workers, interns, and others. Essentially, any individual hired with the assumption of indefinite employment and who is guaranteed a specific number of hours per workweek can be considered a regular employee.
Why is regular time important?
Understanding regular time helps ensure you don't incorrectly compensate employees, which can also lead to fines and penalties. In the US, for instance, the Department of Labor (DOL) requires companies to compensate non-exempt employees for any hours they work beyond their regularly scheduled shifts. Failure to compensate these employees for overtime hours can result in federal fines of as much as $1,000 per violation.
How to calculate an employee's regular time
The process for calculating regular time depends on the overtime laws of your employee's country or state.
In the US, for instance, employers must abide by federal laws regarding overtime compensation as well as individual state laws, which can vary slightly. According to federal law, employers must pay employees 1.5 times their regular rate (known as time and a half) for any hours in excess of 40 per week. Where an individual state has differing standards, employers are expected to compensate their employees according to the laws that provide greater compensation. Employers with remote employees who work internationally must abide by the standards of the country where the employee is located.
Federally, overtime is considered any time worked beyond the 40-hour-per-week standard. The DOL views regular time to include any time that an employee spends doing tasks or activities that:
Benefit the employer
The employer is aware of
The employer has not prohibited
In other words, regular time doesn't just apply to the hours an employee spends clocked in or physically at work. If they're engaged in tasks or activities that satisfy the above conditions, you must include that time in your regular time calculations. To calculate an employee's regular time, you need to:
Determine the employee's shift start and end times
Subtract start time from end time to determine the total amount of hours worked
Subtract unpaid time, such as unpaid lunch hours or other breaks
Timesheets, punch cards, and other time-tracking programs document when employees begin and end their shifts and can track unpaid lunches and breaks. Convert the time worked into decimal form if an employee doesn't work an even number of hours.
Adherence to local labor laws is crucial, as regulations may specify the maximum allowable regular hours per week and any associated overtime rates.
Employee salaries or wages are often based on regular time, and employers need to establish clear and fair compensation structures for standard working hours.
Striking a balance between workload and employee well-being during regular hours is vital for maintaining a healthy and productive work environment.
Understanding regular time is essential for effectively managing overtime, ensuring compliance with labor laws, and establishing appropriate compensation for additional hours worked.
Transform spaces, elevate workplaces
Old legends, new triumphs
Upgrading the daily grind
Balancing work and well-being
Simplified structure, full control
Quietly counted compensation
Competence, not cousins
Scaling heights, sans vertigo