Several months ago, the
U.S. Supreme Court ruled that the time an employee spends walking to his or her
work station after donning required protective gear counts as hours worked
under the Fair Labor Standards Act and must be compensated.1
At first glance,
employers might think that the high court’s ruling couldn’t have much of an
impact on wages, as the amounts of walking time normally involved each day are
small, generally just minutes. But as a recent development shows, those minutes
can add up to a big payout for you. We’ll look at what happened to one employer
and offer tips for limiting your own wage liability in similar circumstances.
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.
State Launches
Investigation
Back in 2003, the
Kentucky Department of Labor launched an investigation into walking time
concerns at a Toyota Motor Manufacturing of Kentucky paint shop. The workers
claimed they were entitled to be paid for time they spent changing into and out
of protective clothing, as well as for time spent walking to and from their
work stations in that gear.
The department completed
its investigation last year but held off issuing a decision because of the
walking time case that was pending before the Supreme Court, which was expected
to clarify
obligations to its paint shop employees.
Now, three months after
the high court handed down its ruling,
has decided to voluntarily settle for a steep $4.5 million. The auto
manufacturer has offered about 1,000 paint shop employees back pay for approximately
eight minutes of walking time each day, for a period of five years, which is
the
of limitations.
The offer is based on
minutes is the most time it would take an employee to change into and out of
the clothing and walk to and from the workstation. The payout will come to
about $1,000 per employee for each year worked. And, as part of the settlement
offer,
will make back contributions to retirement plans.
Know the Rules
As this development
underscores, even a few minutes of walking time between the locker room and the
shop floor can mushroom into a sizeable paycheck, especially if those extra
minutes have to be paid out at an overtime rate.
Typically, the workday
for employees doesn’t begin until employees arrive at their work stations—so
you aren’t required to pay them for time spent walking to their work stations.
But the rule is different—thanks to the Supreme Court decision—if employees are
required to change into specialized protective clothing or other gear that’s
essential to performing their jobs. In that case, the workday begins as the
worker dons that equipment and continues until he or she is finished doffing
the equipment at day’s end. Time spent walking in between must be compensated.
Note that activities related to changing may also count as hours worked, such
as showering if necessary for health and safety reasons. However, donning of
gear that’s not unique, such as hard hats, earplugs, or safety goggles, won’t
start the work clock running.
Keep in mind that in a
companion case, the Supreme Court ruled that time spent waiting to don protective
gear—time that elapses before the principal activity of donning the
gear—amounts to no more than a preliminary work activity and isn’t covered by
the FLSA.2 But note that it is
unclear whether California wage-and-hour law would still require payment for this
time.
Containing Costs
How can you contain
these changing and walking costs—and limit your exposure to lawsuits? Here are four
measures that can help:
1. Discourage standing
around. Make
sure employees put on their gear just before they’re ready to proceed to
workstations so you don’t wind up paying for time spent standing around once
they’re suited up.
2. Make it quick. Ensure that there’s
adequate space in the locker room or other changing areas so workers don’t
waste valuable time at the end of the day waiting their turn to change.
3. Limit the walking
distance.
limit walking time by having employees don their protective coveralls at the
paint assembly line rather than in a separate locker room.
4. Maintain records. Keep complete records of
all hours your employees work—including all time that counts as part of the
workday, such as time spent changing into protective gear. Not only is this
recordkeeping required by law, but if your pay practices are challenged,
accurate records will make it easier to show that your employees were properly
paid. You can link to the Supreme Court rulings at www.supremecourtus.gov.
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1 IBP Inc. v.
Supreme Court No. 03-1238, 2005
2 Tum v. Barber Foods
Inc.,
Supreme Court No. 04-66, 2005