07/09/2002

EXTRA WAGE & HOUR HIGHLIGHTS

1. What is a full time employee? We realize that some insurance companies say 30 hours and pension laws set 20 hours for pension eligibility. Wage & Hour does not follow these guide lines, but make a determination from management policies and practices. Over 35 hours, the tendency is to accept verified policy. If under 35 hours, be prepared to document and prove established policy as this will be closely scrutinized.

2. Annual payments on profit sharing or a shop man's 1% over ride on labor can fit into the bonus category and be required to be spread over hourage. If tied to hourage or productivity, the payments fall into the incentive category and should follow the incentive bonus formula. If tied into total earnings only, it would be more in the class of discretionary bonus.

3. A machine shop employee, employed by a non-retail store, would not be covered by the law unless he received merchandise from out-of-state vendors, processed goods, or repaired goods for shipment outside the state, repaired motors, etc. for trucks used in transporting goods in interstate commerce or was employed by a shop having the sales volume of $500,000 or more per year. A machine shop employee doing the same work in a retail store with a sales volume of less than $500,000 would be exempt from the Act. (Since January 1, 1977, all retail outlets of chains are subject to the law if the chain in the aggregate does over $500,000 business annually. See #1, page 1 for changes in exemption in 1980 and 1981.)

4. You do not have to pay for holidays off unless this is controlled by an agreement or contract. The Wage and Hour Law controls payment for time worked. However, if you do give holiday pay, or other time off, be sure to show such as "H" for holidays, "V" for vacation, and "S" for personal illness time. In fact, your payroll records should reflect all paid time off with an explanatory note.

5. Holidays or Sundays worked are treated like any other day. Wage and Hour does not require extra pay unless the hours fall into over 40 hours per week category. Extra pay for holidays worked within the 40 hour workweek is determined by company policy, contracts or agreements.

6. Payroll records must be kept at least 3 years and the supplemental records, such as time cards, need to be kept only 2 years. These records may be microfilmed if you make a reader available to the compliance officer on request.

7. Employers are required to keep record of date of birth of all employees under the age of 19 years of age. It is a good idea to have proof of age of any employee under 19 years of age to avoid possible employment of minors.

Official Publication of Ohio Valley Automotive Aftermarket Association. This material is for exclusive use of the members of the Ohio Valley Automotive Aftermarket Association. Any reference herein to laws or government rules and regulations are made solely for the information of members and in no way constitutes a legal interpretation of any legislative or administrative enactment. For advice concerning the legal effects of any enactments referred to herein, members should consult legal counsel or a certified public accountant.