Although it may seem obvious that you have to pay employees for all the hours they spend on their job duties, employers commonly violate this rule. In recent years, a string of employers—including Nordstrom, Taco Bell and meat processor Monfort Inc.—have been hit with lawsuits for not paying workers for “off-the-clock” time. And now a new settlement between a poultry processor and the federal Labor Department emphasizes that not paying workers for tasks performed before punching in and after punching out can be a multimillion-dollar mistake. We’ll look at the rules for when you do—and don’t—have to pay for “off-the-clock” work.
Workers Seek Pay For Donning And Doffing Gear
Poultry processing workers at Perdue Farms Inc. were required to start their jobs, with work clothing and protective gear on, when the production line was up and running. They weren’t paid for the time spent putting on this gear before their shifts started. Nor were they compensated for time spent at the day’s end taking off the gear and sanitizing.
The HR Management & Compliance Report: How To Comply with California Wage & Hour Law, explains everything you need to know to stay in compliance with the state’s complex and ever-changing rules, laws, and regulations in this area. Coverage on bonuses, meal and rest breaks, overtime, alternative workweeks, final paychecks, and more.
Millions In Back Wages
Now, in one of the Labor Department’s largest-ever consent judgments, Perdue Farms has agreed to change its practices and compensate more than 25,000 current and former employees for time spent donning and doffing work clothing and protective gear. The judgment will cost Perdue about $10 million.
When You Do—And Don’t—Have To Pay
As a general rule, you must pay employees for all the time they are under your control and required or permitted to work. In particular, you must pay them for activities closely related to their jobs.
Here are some examples:
- Changing clothes and washing up. As long as these activities are not just for the employee’s personal convenience, the time spent is compensable. For instance, you must pay employees for putting on clothing if the nature of the job requires it and doing so takes more than just a few minutes of the employee’s time. So, as the Perdue Farms case demonstrates, you have to pay someone for putting on safety equipment or special clothing needed to do the job. But you often don’t have to pay workers for changing into uniforms, especially if they could just as easily put them on at home.Also, you may have to compensate employees for changing clothes or washing up at the end of a shift if they must do so because they work in a toxic or extremely dirty environment. Note, however, that you don’t have to pay for time spent changing clothes, regardless of the reason, if a union agreement excludes it from working time.
- Preparing or cleaning machines and tools. These tasks are obviously necessary to perform the job, and time spent on them must be compensated.
- Arriving early, staying late. You have to pay workers for their time if they must arrive early to review log books, exchange work information with employees from a prior shift, or stay late to exchange information with the next shift. However, you don’t have to compensate employees for time spent checking in and out or waiting in line to punch the clock unless a collective bargaining agreement requires it.
Keep Time Records
Finally, it’s important to keep complete records of all hours your employees work—including all time they put in on tasks before and after their work day. Not only is such record keeping required by law, but if your pay practices are challenged, accurate records will make it easier for you to show that your employees were properly paid.