Human Resources News & Insights

Daylight Savings could bring payroll headache

Don’t be surprised if employees complain about smaller paychecks this pay cycle.

As you know, Daylight Saving Time (DST) began on Sunday, March 11, at 2 a.m. Because we turned clocks ahead one hour, people working overnight shifts may have worked one fewer hour.

That means not only could their regular paychecks be smaller, but your company may owe them less overtime as well.

Of course, companies may decide to pay people for the full shift, even though they worked one hour less because of the time change.

In this case, the Fair Labor Standards Act says that extra paid hour doesn’t count toward “hours worked” for overtime purposes. You also don’t have to include that hour in the regular rate of pay.

You can find out more about DST, as well as when we’ll change the clocks backward in the fall, here.

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