Denver Staffing Agencies – Proactive Overtime Management is Just Good Business!

  • Posted by: J. Kent Gervasini |
  • 12/12/12 |
  • 5:45 PM
  • 13058 Views
Denver Staffing Agencies – Proactive Overtime Management is Just Good Business!

As a Denver employer of an hourly, non-exempt workforce during the 2008 Great Recession, we know that overtime hours worked by your staff have been sparingly approved.  Due to the negative impact of increased payroll cost on your company’s budget, Proactive Overtime Management is a must as discussed in our blog on August 22, 2012.

State of Colorado and City & County of Denver Enforce Strict Overtime Policies 
During the Great Recession of 2008, Denver employers have been proactively managing overtime, and in some cases have written strict overtime policies.  This has been especially true in the government sector as we have seen with the City and County of Denver as well as the State of Colorado.  Approval for overtime requests with both of these employers would almost require an “act of God”.  In reality, these government employees must leave their jobs at the end of their scheduled shifts; without exception.  Furthermore, government entities also manage their budget deficits by mandating furlough (unpaid) days to control sky rocketing payroll costs.

Overtime Hours Definition – State of Colorado
Employees shall be paid time and one-half of the regular rate of pay for any work in excess of:

  1. Forty (40) hours per workweek
  2. Twelve (12) hours per workday, or
  3. Twelve (12) consecutive hours without regard to the starting and ending time of the workday (excluding duty free meal periods), whichever calculation results in the greater payment of wages.
     

Workweek Definition and Overtime
A workweek is defined as any consecutive seven-day period starting with the same calendar day and hour each week, and:

  • A workweek is a fixed and recurring period of 168 hours, seven consecutive twenty-four hour periods, and is typically established by the employer (24 X 7 = 168).
  • Hours worked in two or more workweeks shall not be averaged for computation of overtime.

Regular Rate of Pay Used to Calculate Overtime Pay
The regular rate of pay for an employee is used to calculate overtime pay, and:

  • The regular rate of pay is expressed as a rate per hour, and it is determined by dividing the total remuneration provided to an employee in any workweek by the total numbers of hours actually worked in that workweek.
  • The regular rate of pay includes all compensation paid to employees including the set hourly rate, shift differential, non-discretionary bonuses, production bonuses, and commissions.
  • The following are excludable from the regular rate of pay: business expenses, bona fide gifts, discretionary bonuses, employer investment contributions, vacation pay, holiday pay, sick leave, or jury duty.

The information in the article above is intended for general education purposes only and should not be relied upon as a substitute for professional, legal, and/or accounting advice.

Source: Colorado Department of Labor & Employment

www.JKentStaffing.com



 

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