Daylight Saving Time Change Issues for Late Shift Workers

Are You Ready for DST?

Posted on 05-Mar-08 by The Timekeeper

So, Daylight Saving Time goes into effect this Sunday, March 9 at 2:00am.

Do you have any employees subject to overtime pay who will be working at that time? Better make sure you handle their pay correctly. It can get tricky, what with the short shift in the spring and an extra-long shift in the fall.

The way I interpret the rules:

You can, if you choose, pay your employees for a full shift even though they really worked one hour short. (If you choose to do this, kudos to you! Hope your employees appreciate what a generous boss they’ve got. )
If you choose to do this, you don’t need to include that “extra” pay when computing the employees’ regular rate of pay for the purpose of overtime calculations for that week.
But that extra hour of pay can’t be credited toward overtime pay that might be due. So, if, for example, the employees actually put in 43 work hours that week, you have to pay them time and a half for all three hours of overtime in addition to the extra hour of “DST pay.”
In the fall, when those workers put in an extra hour as the clock turns back, they must be paid for all hours actually worked, even if you paid them an extra hour’s pay in the spring.
The extra hour worked in the fall must be counted toward hours worked that week for the purposes of computing overtime. So, the way it sounds to me, unless they work a short shift some other night that week (or come in late and/or knock off early on the night of the fall DST change), everybody will be entitled to one hour overtime in the fall.

I am not a lawyer, so of course, all the standard disclaimers apply. Don’t rely on my interpretation of the rules. Whether you plan to pay your late shift employees for a full shift in the spring, or you simply want to pay for hours actually worked, spring and fall — either way you should consult with a qualified professional wage and hour adviser to verify your plans are acceptable under the laws in your locale.

Hat-tip to CCH for reminding me of this issue!