Workers in Canada get statutory, or public, holidays off and receive pay based on a percentage of their wages earned over a 4-week period.
If employees are required to work on a statutory holiday, they typically earn 1.5x their regular rate in addition to their holiday pay.
Payroll software makes holiday pay calculations much more accurate and efficient.
Canadian employers need to know exactly how much they owe their staff during statutory holidays. While it seems straightforward, it can be challenging to track and implement and getting it wrong can lead to costly legal disputes.
A class action lawsuit was filed against banking giant BMO, alleging the company failed to calculate vacation and public holiday pay under the Canada Labour Code. According to the claim, variable compensation, such as commissions and bonuses, was not fully included in employee entitlements dating back to 2010.
Similar claims have been brought against other big Canadian companies. A proposed $800 million class action was filed against RBC Dominion Securities, while a separate $80 million case involved RBC Insurance and Aviva General insurance. Both centered on how holiday and vacation pay was calculated for commissioned employees.
Holiday pay rules
Workers in Canada are entitled to statutory paid holidays (also known on public and general holidays), along with compensation based on their recent earnings. However, calculations vary by province and territory. For example, in Ontario, public holiday is typically calculated as 1/20 of an employee’s regular wages earned in four weeks leading up to the holiday.
In many jurisdictions, certain types of variable compensation, such as commissions and bonuses, may be included in holiday pay calculations depending on how “wages” are defined locally. Overtime, on the other hand, is typically excluded but treatment can vary by province and territory.
Employees who work on a public holiday are generally entitled to additional compensation, such as premium pay (commonly time and a half) or a substitute day off with pay, depending on the applicable employment standards legislation.
Listed below are more details on statutory holiday pay, broken down by several provinces:
Holiday pay: Employees with non-variable hours receive holiday pay equal to 8 hours at their standard rate. For employees with variable hours, holiday pay is calculated at 5% of their gross wages (not including overtime) in the 4-week period immediately before the holiday.
If employees work: Most employees earn a premium pay of 1.5x their regular wage on top of their general holiday pay. An exception exists for hospitals, restaurants, hotels, and continuous operations as long as they provide another day off with general holiday pay within 30 days.
Holiday pay: Employees receive a day’s wages at the regular rate or 4% of their gross wages. If employees have variable hours, they receive an “average day’s pay” which is found by dividing their total number of hours worked by the number of days worked over a 30-day period before the holiday. You then multiply these hours by the regular rate. This calculation excludes overtime but includes vacation.
If employees work: Employees receive a regular day’s pay for a public holiday. If an employee’s wages vary, holiday pay is calculated as an average day’s pay based on all hours worked (excluding overtime) in the 30 days before the holiday.
Holiday pay: Under Ontario’s Employment Standards Act (ESA), public holiday pay is calculated as 1/20 of the regular wages earned in the four work weeks before the public holiday. This calculation excludes vacation pay and overtime pay.
If employees work: Employees are generally entitled to public holiday pay plus premium pay at 1.5 times their regular rate, or a substitute day off with public holiday pay, depending on the arrangement.
Good Friday or Easter Monday (employer’s discretion)
Canada Day
National Patriot’s Day
National Holiday
Labour Day
Thanksgiving
Christmas Day
Holiday pay: Employees receive 1/20 of their wages from the 28 days prior to the holiday. Workers paid by commission receive 1/60 of their wages earned through a 12-week period. Overtime is not included in these calculations.
If employees work: Employees are paid their regular wages for hours worked and are also entitled to either the public holiday indemnity or a compensatory day off with pay.
Holiday pay: Employees receive 5% of their wages from the 28 days before the holiday. This calculation includes both vacation and commission but not overtime.
If employees work: Employees receive 1.5x their regular rate for the day on top of the statutory holiday pay.
Calculating holiday pay
Holiday pay rules in Canada can get complex, with different formulas, exceptions, and requirements depending on the jurisdiction. To stay compliant, employers need to track employee time accurately and apply the right calculations.
While government resources can help with one-off calculations, managing this process manually can quickly become time-consuming, especially when reviewing multiple weeks of earnings to determine the correct holiday pay.
That’s where the right system can help. Payroll and time tracking systems automatically track hours worked and apply the appropriate holiday pay calculations, reducing the need for manual work.
Who should be working on public holidays?
Calculating mandated holiday pay is one thing – paying time and half to staff who work on a holiday is another. Labour hours on a holiday are quite an expense to take on and, if not planned correctly, can be unnecessary at times.
So how do you actually determine the number of staff you need on hand during a holiday?
The first step is to track your historical demand patterns consistently. By doing this, you’ll be able to project your expected demand for an upcoming holiday. Typically this is done by looking at last year’s holiday sales alongside other patterns like upcoming local events, promotions, and weather.
With an accurate demand prediction, you can then figure out the number of employees you’ll need on duty. Backing your staffing plan with actual metrics like this keeps you from accidentally overspending on expensive holiday labour. You should only be paying 1.5x rates to employees who are actually needed.
Managing demand forecasts and labour ratios can quickly add up in terms of time and effort. Fortunately, you don’t have to do it all manually. Labour forecasting software can simplify the process, helping reduce admin time and avoid unnecessary overtime costs.
Get it done efficiently
Once you know the basics, holiday pay is pretty simple to understand – you just need the right tools to improve accuracy, save time, and ensure HR compliance.
With an all-in-one HR, payroll, and scheduling platform like Workforce.com, you can record employee hours and automatically calculate holiday pay when the time comes. Complete with a labour forecasting module, you’ll also be able to predict how many staff you really need working those expensive holiday hours.
When a paid public holiday like New Year’s or Canada Day comes around, keeping your employees happy is more important than ever – this means abiding by national labour standards and paying them what they are legally owed. Get this done in the most efficient way possible while also improving your bottom line with Workforce.com.
This information is for general purposes only and should not be considered legal advice. While we strive to keep it updated, laws and regulations can change at any time. It’s always a good idea to consult with a legal professional or relevant authorities to compliance with the most current standards.
Many states default to the federal minor labor standards, but several have designated their own.
Minor labor laws are in place to provide safeguards for people under 18 who are employed and, generally, still attending school. These laws help employers like you prioritize young employees’ health, well-being, and education.
These safeguards restrict the number of hours a minor can work during a day or week. They also prohibit the kind of work minors are allowed to do.
Every state varies in its minor labor rules, so it’s important to understand and stay compliant with employment legislation in your area. Employers who violate minor labor laws are subject to hefty fines – punishment can even escalate to imprisonment if the government decides you’ve violated the laws willfully or repeatedly.
Federal minor labor laws
Child labor laws in the US are designated by the Fair Labor Standards Act of 1938 (FLSA). If a state doesn’t have its own child labor laws, it must default to the federal minor labor laws. Many states use a combination of federal law and their own state modifications.
The FLSA states that minors under 16 may not work more than eight hours per day and 40 hours per week when school is not in session, and they may not work more than 3 hours per day and 18 hours per week when school is in session.
It also has laws around the nightly hours that minors under 16 can work. During the school year, federal law states that minors under 16 cannot work after 7 pm or before 7 am. From June 1st through Labor Day, it states that minors under 16 can work until 9 pm.
Minor labor laws by state
States can default to the federal minor labor laws or write their own in accordance with federal laws. For instance, some states allow minors under 16 to work just three hours per day on a school day in accordance with federal law, whereas other states give employers and minors more flexibility with the hours they’re allowed to work when school is in session.
Some states also allow minors to work outside these laws with expressly written consent from a parent or legal guardian and/or the school the minor attends.
All the specificities of each state’s minor labor laws can be found in the table below.
Work Permit: Not required except for entertainment industry
Max number of daily hours, weekly hours, and days per week for:
Under 16:8 hours per day, 48 hours per week, 6 days per week.
16 and 17: 10 hours per day, 54 hours per week, 6 days per week.
Night work is not allowed for minors of these ages during these hours:
Under 16: Before 6 AM or after 7 PM (9 PM before a non-school day)
16 and 17:
Before 6 AM or after 11 PM on nights before a school day
May work until midnight before a non-school day
Note: Unless otherwise noted, 17-year-olds are subject to fewer or no hour restrictions under state law, though hazardous occupation rules still apply.
Max number of daily hours, weekly hours, and days per week for:
14 and 15:
When school is not in session, 8 hours per day, 40 hours per week, 6 days per week.
When school is in session, 3 hours per day (8 hours on Saturday and Sunday), 15 hours per week
May not work more than 4 consecutive hours without a 30-minute uninterrupted meal break
16 and 17:
Up to 8 hours per day on school days.Restrictions on hours during school weeks may be waived with appropriate parental or school consent under Florida law (HB49)
If scheduled to work 8 or more hours in a day, may not work more than 4 consecutive hours without a 30-minute meal break
Night work is not allowed for minors of these ages during these hours:
14 and 15:
7 pm to 7 am before or on a school day. 9 pm to 7 am during holidays and summer vacation
16 and 17:
11 pm to 6:30 am when school is scheduled the following day
Max number of daily hours, weekly hours, and days per week for:
14 and 15:
3 hours per day on a school day, 8 hours per day on a non-school day, and 18 hours per week
When school is not in session, they may work 8 hours per day and 40 hours per week
16 and 17:
When school is in session, 6 hours per school day (8 on a non-school day), 30 hours per week
To work more than thirty (30) hours, they must complete the Certificate of Satisfactory Academic Standing Form and the Parent/Guardian Statement of Consent Form
When school is not in session, no restrictions
Night work is not allowed for minors of these ages during these hours:
14 and 15:
May not work before 7 AM or after 7 PM (9 PM June 1 through Labor Day)
16 and 17:
May not work before 6 AM or past 10:30 PM (11 PM with parental permission) preceding a school day or 1 AM preceding a non-school day
Max number of daily hours, weekly hours, and days per week for:
14 and 15:
When school is not in session, 8 hours per day, 40 hours per week, 6 days per week
When school is in session, 3 hours per day
16 and 17:
None
Break time is up to the discretion of the employer except for youth workers in the entertainment industry, where youth workers must take a meal break after working no more than five and a half hours. They are also entitled to a 15-minute rest period, counted as work time, after every two hours of continuous work.
Night work is not allowed for minors of these ages during these hours:
Under 16:
7 pm (9 pm from June 1st – Labor Day; 10:30 pm if the minor works at a regional fair) to 7 am.
Max number of daily hours, weekly hours, and days per week for:
14 and 15:
When school is not in session, 8 hours per day, 40 hours per week, 6 days per week
When school is in session, 3 hours per day (8 hours on a non-school day), 18 hours per week, 6 days per week
16 and 17:
When school is not in session, 8 hours per day, 48 hours per week, 6 days per week
When school is in session, 4 hours per day on days preceding a school day, 8 hours on Fridays, Saturdays, Sundays, and holidays, 28 hours per week, 6 days per week
Night work is not allowed for minors of these ages during these hours:
14 and 15:
Before 7 am or after 7 pm (9 pm from June 21st – Labor Day)
16 and 17:
Before 6 am or after 10 pm on nights before a school day
Before 6 am or after 12 am on nights not followed by a school day
May work until midnight before a school day with written permission from a parent and the school
Max number of daily hours, weekly hours, and days per week for:
14 and 15:
When school is not in session, 8 hours per day, 40 hours per week
When school is in session, 3 hours per day (8 hours on a non-school day), 18 hours per week
16 and 17: 44 hours per week, no daily hour restrictions.
Employers must provide 30-minute meal breaks for six or more hours of work in a day. Fifteen-minute rest breaks are also required for each four hours of work.
Night work is not allowed for minors of these ages during these hours:
Under 16: 7 pm (9 pm from June 1st – Labor Day) to 7 am
Max number of daily hours, weekly hours, and days per week for:
14 and 15:
When school is not in session, 8 hours per day, 40 hours per week
When school is in session, 4 hours per day (8 hours on a non-school day), 18 hours per school week, plus up to 8 additional hours on Saturdays and Sundays
16 and 17:
When school is not in session, 10 hours per day, 48 hours per week
When school is in session, 8 hours per day, 28 hours per school week, plus up to 8 additional hours on Saturdays and Sundays, 6 days per week
A 30-minute meal period required on or before five consecutive hours of work.
Night work is not allowed for minors of these ages during these hours:
Max number of daily hours, weekly hours, and days per week for:
14 and 15:
When school is not in session, 8 hours per day, 40 hours per week, 6 days per week
When school is in session, 3 hours per day (8 hours on Saturdays and Sundays), 16 hours per week, 6 days per week
Must receive a paid 10-minute rest break for every 2 hours worked and a 30-minute meal period after 4 hours of work
16 and 17:
When school is not in session, 8 hours per day, 48 hours per week, 6 days per week
When school is in session, 4 hours per day (8 hours on Fridays, Saturdays, and Sundays), 20 hours per week, 6 days per week
Must receive a paid 10-minute rest break for every 4 hours worked and a 30-minute meal period if working more than 5 hours; may not work more than 3 hours without a rest break
Night work is not allowed for minors of these ages during these hours:
14 and 15:
7 pm (9 pm from June 1st – Labor Day) to 7 am
16 and 17:
10 pm to 7 am, Sunday through Thursday. Midnight to 5 am Friday, Saturday, and when school is not in session.
Max number of daily hours, weekly hours, and days per week for:
Ages 14–17:
No more than 8 hours in any 12-hour period.
No work before 5:00 am or after 10:00 pm (midnight on non-school nights).
Note: Wyoming state law provides general limits for minors; however, most employers are subject to federal child labor laws (FLSA), which impose stricter limits on hours and times of work for minors under 16. Employers must follow the more restrictive standard.
Max number of daily hours, weekly hours, and days per week for:
14 to 17:
8 hours per day, 40 hours per week, 6 days per week
When school is in session, total hours of school and work combined may not exceed 8 hours per day
Night work is not allowed for minors of these ages during these hours:
Under 16:
6 pm to 8 am
16 and 17:
10 pm to 6 am
Note: Federal child labor laws may impose stricter limits, particularly for minors under 16 during school weeks.
States have diverse regulations governing child labor, including restrictions on work hours, permitted job types, work permit requirements, and proof of age or age verification. While many of these rules are clearly defined, others can be nuanced or ambiguous. To ensure compliance, it’s crucial to verify a minor’s age before hiring and to follow both federal and state laws applicable to youth employment. When in doubt, consult the appropriate state office for clarification.
Below are some notable state-specific rules and differences that employers should keep in mind.
Minor labor laws in New York
New York has its own child labor laws and is stricter than many states. For minors ages 16 and 17, New York generally limits them to no more than 28 hours per week while school is in session. Many other states allow 16 and 17 year-olds to work 40 or more hours per week, even when school is in session.
New York gives working hour exceptions to 16 and 17 year-olds who have written permission from both their parent or legal guardian and a certificate of satisfactory academic standing from the school they attend. Without this permission, they are prohibited from working after 10:00 pm on a day before a school day.
Minor labor laws in Alabama
In Alabama, each employer must obtain the proper Child Labor Certificate for each location where minors under 18 are employed. There are two classes of Child Labor Certificates: Class I is required for 14 and 15-year-olds, and Class II is required for 16 and 17-year-olds.
Alabama also has restrictions for employers that sell liquor. Minors 14 and 15 years of age are not permitted to work at any establishment that serves alcohol on its premises.
Minor labor laws in Colorado
In Colorado, minor labor laws apply to all people under 18 unless they have received a high school diploma or GED. While work permits are not required in Colorado, employers can request an age certification as proof of age. These certifications are issued by the school or county where the minor lives. Colorado also allows 14 and 15-year-olds to obtain a school release permit in limited circumstances if a student wishes to work on a school day during school hours.
Colorado’s labor laws also include various trades that are permissible at certain ages. For example, a 9-year-old can do shoe-shining, yard work, golf caddying, and other similar jobs. Once a minor turns 14, they can work in a wide range of non-hazardous occupations, subject to state and federal restrictions.
Workforce.com helps you stay in compliance with minor labor laws
Workforce.com’s scheduling, time & attendance,and payrollsoftware lets you easily keep track of hours worked so you don’t overschedule people under 18 and pay them accurately. Our software allows you to automatically account for the break laws and hourly limits for minors in all 50 states so you can schedule your employees with confidence that you’re staying in compliance. Workforce.com handles all paid and unpaid breaks and overtime rules, so you don’t have to remember what they are off the top of your head.
Workforce.com gives you both convenience and confidence when it comes to scheduling your employees under 18. Give Workforce.com a try today.
This information is for general purposes only and should not be considered legal advice. While we strive to keep it updated, laws and regulations can change at any time. It’s always a good idea to consult with a legal professional or relevant authorities to compliance with the most current standards.
There are no state or federal laws regarding severance pay.
Organizations might consider implementing severance pay agreements to improve employer-employee relations, boost employer branding, strengthen retention and acquisition, and avoid legal disputes.
While there are no federal or state laws in relation to severance pay, there are state laws on when an employee’s final paycheck is to be processed. – More
Have you ever considered the critical role that severance pay plays in protecting your organization and its employees during workforce transitions? Severance pay refers to the financial compensation provided by an employer to an employee upon termination of employment. It is typically based on factors such as length of employment and employment contract terms.
Severance benefits provide the terminated employee with a vital safety net, offering financial support and stability for people until they find a new job. They also offer significant benefits for organizations.
Severance pay helps maintain employee morale and fosters a positive work environment during challenging workforce transitions. By including severance pay as part of your compensation package, you demonstrate your commitment to supporting employees and enhancing the organization’s reputation as a compassionate and responsible employer.
What does the law say about severance pay?
Neither federal nor state laws in the United States mandate severance pay. The U.S. Department of Labor clarifies that “severance pay is a matter of agreement between an employer and an employee (or the employee’s representative),” with no requirement under the Fair Labor Standards Act (FLSA).
However, it’s important to note that certain circumstances may trigger legal requirements related to severance pay. One such regulation is the Worker Adjustment and Retraining Notification (WARN) Act. The WARN Act applies to businesses with a certain number of employees and requires employers to provide advance notice of plant closings or mass layoffs. While the WARN Act doesn’t specifically mandate severance pay, it may come into play in situations where employers fail to comply with the required notice period.
Employers should know the WARN Act’s provisions and seek legal advice to ensure compliance when contemplating workforce reductions or closures. Although severance pay is not universally mandated, employers must navigate these potential legal considerations and make informed decisions to uphold fairness, ethical practices, and employee welfare if they are to offer it as an employee benefit.
Should your organization consider offering severance packages?
In the absence of any state or federal law, is it worth offering severance packages to soon-to-be former employees? There are a number of pros and cons to including severance agreements in your company policies. Understanding these can help you make an informed decision that aligns with your organization’s values and goals.
The benefits of offering severance pay include the following:
Employee transition support: Severance pay provides employees with a cushion to manage the transitional period between jobs. It can help cover expenses such as job search costs, the continuation of health insurance, and retraining and facilitate a smoother transition to new employment.
Positive employer-employee relationships: Providing severance pay builds trust and fosters a positive relationship between employers and employees. It sends a message that the organization cares about its workforce beyond just their time of employment, strengthening loyalty and engagement. This positive relationship can increase productivity, employee satisfaction, and a more supportive work environment overall.
Talent acquisition and retention: Offering severance pay as part of your compensation package can attract top talent to your organization. Prospective employees may view it as a sign of a supportive and compassionate workplace, increasing their interest in joining your team. Moreover, existing employees may feel more secure and committed, knowing that the organization values their well-being, potentially reducing turnover rates.
Mitigation of potential legal risks: Although it’s not part of any employment law, offering severance pay can help mitigate potential legal risks. By providing a fair and structured severance package and establishing clear terms for separation in your employee handbook, you minimize the likelihood of unpleasant legal disputes.
The drawbacks of offering severance pay include:
Financial impact:Severance pay can be a significant financial commitment for organizations, especially during large-scale layoffs or restructuring. Considering the potential costs and ensuring that offering severance packages aligns with your budgetary constraints is essential.
Setting a precedent: Offering severance pay may establish a precedent for future terminations or workforce transitions. Establishing consistent HR policies and guidelines is crucial to avoid perceived inequalities or inconsistencies in severance package offerings.
Impact on retention and turnover: While severance pay can support departing employees, it may also inadvertently encourage voluntary turnover. Some employees may view the availability of severance pay as an opportunity to leave the organization, potentially impacting retention efforts.
Ultimately, the decision to offer severance packages should be based on your organization’s unique circumstances, values, and long-term objectives. By carefully considering the pros and cons, you can strike a balance that supports both your employees and your organizational goals.
Scenarios where severance pay might be beneficial
Severance pay is a valuable resource for employers and employees during workforce transitions. By exploring these scenarios, we can shed light on the benefits of severance pay and its role in supporting employees during critical moments of job loss or transition.
Workforce reductions or layoffs: During times of downsizing, layoffs, or restructuring, offering severance pay can help ease the financial impact on affected employees. It provides them with a lump sum or structured payments based on their service length, helping bridge the gap between jobs and maintain a sense of financial security.
Employment termination without cause: When terminating an employee without cause, offering severance pay can mitigate the potential legal risks associated with such terminations. It demonstrates fairness and goodwill, providing a financial cushion to support the employee during their job search or transition period.
Non-compete and confidentiality agreements: In situations where employers require employees to sign non-compete or confidentiality agreements, offering severance pay can provide a financial incentive for departing employees to uphold their obligations, protecting the employer’s business interests.
It is important to note that the applicability and specifics of severance pay may vary based on the employer’s policy, employment agreements, and applicable federal and state laws for things like insurance benefits, unemployment benefits, non-compete clauses, and unused vacation. It is good practice to consult employment attorneys to ensure compliance and fairness.
Final paycheck laws
While there are no specific federal or state laws mandating severance pay, “final paycheck” laws surrounding termination of employment vary between states. Final paycheck laws dictate the timing and requirements for providing employees with their last paycheck after leaving a job.
Final paycheck laws refer to the legal regulations employers must adhere to when issuing final payments to employees leaving their positions. These laws cover aspects such as the timeframe for payment, differentiating between voluntary resignations and involuntary terminations, and whether accrued vacation time should be included in the final payment. The specifics of these laws can vary significantly from state to state, so it’s crucial to understand and comply with the regulations that apply to your jurisdiction.
To assist you in navigating the intricacies of final paycheck laws, we have compiled a comprehensive table outlining the specific requirements and guidelines for each state in the US as of 2023. In the table, we have differentiated between situations where an employee resigns voluntarily or if they are fired. For more in-depth information, click on the respective state hyperlinks.
1) Within ten (10) working days or the next payday, or 2) if the employee requests an earlier payment in writing, it must be within 48 hours of receiving the request (whichever is sooner)
1) Within ten (10) working days or the next payday, or 2) if the employee requests an earlier payment in writing, it must be within 48 hours of receiving the request (whichever is sooner)
Paid by the next scheduled payday or fifteen (15) calendar days (whichever is sooner)
Immediately (within four hours or end of the business day, whichever occurs first)
OR In presence of a written policy that extends the time for payment, the wages may not be delayed beyond the next payday or fifteen (15) calendar days (whichever is sooner)
Regardless of the reason why you’re issuing a final paycheck, may it be due to voluntary resignation or laying off employees, you need to get their final paychecks right – from computation to timely release. However, it can get complicated because of varying state rules.
Workforce.com’s payroll platform ensures that final paycheck computations are correct according to applicable state rules. It also takes into account everything that goes into that final paycheck, from deductions, accrued PTOs, time worked all within the scope of your company policies and that of the state or federal government.
Saying goodbye to employees, regardless of the circumstances, is never easy. Workforce.com helps lighten the administrative load, ensuring a smooth offboarding process and fostering an amicable end to the employment relationship.
Discover how Workforce.com can simplify payroll and HR processes for your hourly teams. Book a demo today.
This information is for general purposes only and should not be considered legal advice. While we strive to keep it updated, laws and regulations can change at any time. It’s always a good idea to consult with a legal professional or relevant authorities to compliance with the most current standards.
When it comes to rest and lunch breaks, managers often assume that a few minutes here and there will be insignificant.
However, this is simply not the case. Over the past several years, we’ve seen break-rule violations result in costly lawsuits.
In April 2022, an Oregon healthcare facility filed a lawsuit with the federal court system to overturn the state’s detailed meal and rest break rules. The facility is attempting to avoid nearly $100 million in fines due to persistent violations of employee meal and rest break rights dating back to 2015.
What’s confusing is that if this healthcare facility was in a different state, say Arkansas, these violations and fines would not exist.
Federal guidance on the subject of lunch breaks is slim to none – but state laws concerning paid and unpaid breaks vary.
It’s important to stay up-to-date on break rules in your state. While rest break rules can be convoluted, they are actually quite easy to comply with these days with the right payroll software and scheduling system in place.
Federal break laws
No federal law requires companies to offer breaks during work hours for meals or any other purpose.
However, according to the U.S. Department of Labor, federal law says that if a company chooses to allow break periods, any break under 20 minutes should be paid, and any over 30 minutes can be unpaid and classified as “off-the-clock.”
So, in essence, the federal government leaves it up to the employer. Rest breaks (under 20 minutes) are paid, and meal breaks (over 30 minutes) are unpaid. If a state has no laws regarding breaks, these federal standards automatically apply.
State break laws
It is up to the states to choose their own lunch and rest break laws. Some states default to the federal policy, while others have their own set of specific regulations to follow.
All meal and rest break laws only apply to non-exempt employees. Under federal law, exempt employees must earn at least $35,568 annually ($684/week) and meet certain duties tests, though many states have higher salary thresholds. For exempt employees, breaks are at the employer’s discretion.
Find your state below and click on it to see its break rules heading into 2026:
Minor Break: 14-15-year-old employees who work more than 5 continuous hours get a 30-minute break.
Alabama defaults to federal law regarding breaks for workers aged 16+. If an employer chooses to provide a break, it must be paid only if it lasts less than 20 minutes. Breaks lasting longer than 30 minutes are classified as meal periods and do not need to be paid as long as the employee is completely relieved of all duties.
Minor Break: Minors ages 14-17 who work 5+ consecutive hours get a 30-minute break.
Alaska defaults to federal law regarding breaks for workers aged 18 and over. If an employer chooses to provide a break, it must be paid only if it lasts less than 20 minutes. Breaks lasting longer than 30 minutes are classified as meal periods and do not need to be paid as long as the employee is completely relieved of all duties.
Arizona defaults to federal law regarding breaks for all workers. If an employer chooses to provide a meal break, it must be paid only if it lasts less than 20 minutes. Breaks lasting longer than 30 minutes are classified as meal periods and do not need to be paid as long as the employee is completely relieved of all duties.
Minor Break:Minors under 16 in the entertainment industry must receive a rest break if working more than 6 hours and a 12-hour rest break between shifts.
Arkansas defaults to federal law regarding breaks for workers of all ages. If an employer chooses to provide a break, it must be paid only if it lasts less than 20 minutes. Breaks lasting longer than this do not need to be paid as long as the employee is completely relieved of all duties.
The state does have a special lactation break law. Employers must provide reasonable unpaid break time to employees who are lactating. These breaks must be taken in a private place close to their work area (not a bathroom stall).
Employees get a 30-minute unpaid meal break during a shift that is longer than five consecutive hours. If the employee is relieved of regular work duties and can leave the premises during their break, the break goes unpaid. But if these requirements are not met, the break must be paid at the regular rate of pay.
An employee may also waive their lunch break upon mutual consent with management if a workday will be completed in six hours or fewer.
If a work shift is longer than 10 hours, a second 30-minute rest break must be provided. If a total of 12 hours or fewer are worked in a day, this second meal break may be waived, but only if the first meal period was not waived. Employees who work longer than 15 hours get an additional third 30-minute break. If they work longer than 20 hours, they get a fourth 30-minute break.
If an employer fails to provide an employee a meal break during a shift, they owe the employee one extra hour of pay at the employee’s regular rate.
Rest Break:
Employees get a 10-minute paid rest break every 4 hours. A 10-minute break is not required for work time totaling less than three and a half hours.
Employees working in extreme weather conditions must also be provided with a five-minute “recovery period” in a protected environment in addition to their meal and rest break.
For every day an employee is forced to work through one or more of their rest breaks, their employer must pay them one additional hour of wages at the regular rate.
Minor Break:
Minors in non-entertainment industries follow the same meal and rest break rules as adults. Minors in the entertainment industry have additional protections, including age-based limits on worksite hours and dedicated time reserved for rest and recreation.
Meal Break: 30 minutes for employees who work 5+ hours. If the break is “duty-free” it goes unpaid. However, if a “duty-free” meal is not possible, the employee may take an “on-duty” meal, in which case the employee must be paid.
Rest Break:10 minutes paid per 4 hours worked
Minor Break:Minors follow the same meal and rest break rules as adults, though hour restrictions for minors under 16 may affect whether a meal break applies.
Meal Break: Unpaid 30 minutes for employees 18+ who work at least 7.5 hours. Meal breaks must be given sometime after the first two hours of work and before the last two hours of work. Employers are exempt from this requirement only if:
Complying endangers public safety
The duties of the position can only be done by one employee
Fewer than five employees are working a shift in a particular location
Operations require employees to be available to respond to urgent conditions
There exists a collective bargaining agreement that provides otherwise
The employee is employed by a local school board to work directly with children
Rest Break:No state-mandated requirement.
Minor Break: 30 minutes for employees under 18 for every 5 consecutive hours of work.
Minor Break: 30-minute uninterrupted meal break required for employees under 18 who work more than 4 consecutive hours.
Florida defaults to federal law regarding breaks for workers aged 18 and over. If an employer chooses to provide a meal break, it must be paid only if it lasts less than 20 minutes. Breaks lasting longer than 30 minutes are classified as meal periods and do not need to be paid as long as the employee is completely relieved of all duties.
Georgia defaults to federal law regarding breaks for all workers. If an employer chooses to provide a meal break, it must be paid only if it lasts less than 20 minutes. Breaks lasting longer than 30 minutes are classified as meal periods and do not need to be paid as long as the employee is completely relieved of all duties.
Minor Break: 30 minutes for 14 and 15-year-old employees who work five consecutive hours
Hawaii defaults to federal law regarding breaks for workers aged 16 and over. If an employer chooses to provide a meal break, it must be paid only if it lasts less than 20 minutes. Breaks lasting longer than 30 minutes are classified as meal periods and do not need to be paid as long as the employee is completely relieved of all duties.
Idaho defaults to federal law regarding breaks for all workers. If an employer chooses to provide a meal break, it must be paid only if it lasts less than 20 minutes. Breaks lasting longer than 30 minutes are classified as meal periods and do not need to be paid as long as the employee is completely relieved of all duties.
Minor Break: 1-2 breaks totaling 30 minutes for employees under 18 who work at least six consecutive hours.
Indiana defaults to federal law regarding breaks for workers aged 18+. If an employer chooses to provide a meal break, it must be paid only if it lasts less than 20 minutes. Breaks lasting longer than 30 minutes are classified as meal periods and do not need to be paid as long as the employee is completely relieved of all duties.
Minor Break: At least 30 minutes for employees under the age of 16 who work 5+ consecutive hours.
Iowa defaults to federal law regarding breaks for workers aged 16 and over. If an employer chooses to provide a meal break, it must be paid only if it lasts less than 20 minutes. Breaks lasting longer than 30 minutes are classified as meal periods and do not need to be paid as long as the employee is completely relieved of all duties.
Kansas defaults to federal law regarding breaks for all workers. If an employer chooses to provide a meal break, it must be paid only if it lasts less than 20 minutes. Breaks lasting longer than 30 minutes are classified as meal periods and do not need to be paid as long as the employee is completely relieved of all duties.
Meal Break:Reasonable unpaid meal period (typically 30 minutes) for employees who work 5+ consecutive hours. Must be provided between the 3rd and 5th hour of work.
Rest Break: 10 minutes after every 4 hours of work.
Minor Break: Minors follow the same meal and rest break requirements as other employees.
Minor Break: At least 30 minutes unpaid for employees under 16 who work five consecutive hours
Louisiana defaults to federal law regarding breaks for workers aged 18 and over. If an employer chooses to provide a meal break, it must be paid only if it lasts less than 20 minutes. Breaks lasting longer than 30 minutes are classified as meal periods and do not need to be paid as long as the employee is completely relieved of all duties.
Meal Break / Rest Break: 30-minute break for employees who work 6+ consecutive hours (may be unpaid if the employee is fully relieved of duties). Applies only where three or more employees are on duty, and certain exceptions (small workplace, emergencies, agreements) apply.
Minor Break:No separate state-mandated minor break beyond the general rule
Minor Break:30-minute uninterrupted meal period required for employees under 18 who work more than 5 consecutive hours.
Michigan defaults to federal law regarding breaks for workers aged 18 and over. If an employer chooses to provide a meal break, it must be paid only if it lasts less than 20 minutes. Breaks lasting longer than 30 minutes are classified as meal periods and do not need to be paid as long as the employee is completely relieved of all duties.
Mississippi defaults to federal law regarding breaks for all workers. If an employer chooses to provide a meal break, it must be paid only if it lasts less than 20 minutes. Breaks lasting longer than 30 minutes are classified as meal periods and do not need to be paid as long as the employee is completely relieved of all duties.
Minor Break:No general state-mandated break requirement; limited industry-specific exceptions may apply (e.g. entertainment).
Missouri defaults to federal law regarding breaks for all workers. If an employer chooses to provide a meal break, it must be paid only if it lasts less than 20 minutes. Breaks lasting longer than 30 minutes are classified as meal periods and do not need to be paid as long as the employee is completely relieved of all duties.
Montana defaults to federal law regarding breaks for all workers. If an employer chooses to provide a meal break, it must be paid only if it lasts less than 20 minutes. Breaks lasting longer than 30 minutes are classified as meal periods and do not need to be paid as long as the employee is completely relieved of all duties.
At least 30 minutes per 8-hour shift for employees in assembling plants, workshops, or mechanical establishments; no general state requirement for other workplaces.
Rest Break: No state-mandated requirement
Minor Break: No separate state-mandated minor break requirement
Meal Break: At least 30 minutes for employees working 8+ continuous hours.
Rest Break: At least 10 minutes paid every 4 hours. This break is not typically required if an employee’s total work time is less than three and a half hours.
Minor Break: No separate state-mandated break requirement; minors follow the same meal and rest break rules as other employees
Minor Break: At least 30 minutes for employees under 18 who work 5+ hours.
New Jersey defaults to federal law regarding breaks for workers aged 18 and over. If an employer chooses to provide a meal break, it must be paid only if it lasts less than 20 minutes. Breaks lasting longer than 30 minutes are classified as meal periods and do not need to be paid as long as the employee is completely relieved of all duties.
New Mexico defaults to federal law regarding breaks for all workers. If an employer chooses to provide a meal break, it must be paid only if it lasts less than 20 minutes. Breaks lasting longer than 30 minutes are classified as meal periods and do not need to be paid as long as the employee is completely relieved of all duties.
Meal Break: 30 minutes for employees who work 6+ hours between 11 am and 2 pm. 45 minutes for employees midway through a 6+ hour shift that starts between 1 pm and 6 am. An additional 20 minutes between 5 pm and 7 pm for those working a shift starting before 11 am and continuing after 7 pm.
Different rules apply to factory workers. They get a 1-hour lunch period anywhere between 11 am and 2 pm for 6+ hour shifts or a 60-minute break midway through a shift of more than 6 hours that starts between 1 pm and 6 am.
Rest Break: No state-mandated short rest break requirement (e.g., no required 10- or 15-minute breaks)
Note: Note: New York also requires 24 consecutive hours of rest per calendar week in certain industries under the “Day of Rest” law. This is separate from daily rest breaks.
Minor Break:Minors follow the same meal break requirement.
Minor Break: At least 30 minutes for employees under 16 who work 5+ hour shifts.
North Carolina defaults to federal law regarding breaks for workers aged 16+. If an employer chooses to provide a meal break, it must be paid only if it lasts less than 20 minutes. Breaks lasting longer than 30 minutes are classified as meal periods and do not need to be paid as long as the employee is completely relieved of all duties.
Minor Break: At least 30 minutes unpaid for employees under 18 working five consecutive hours or more.
Ohio defaults to federal law regarding breaks for workers aged 18+. If an employer chooses to provide a meal break, it must be paid only if it lasts less than 20 minutes. Breaks lasting longer than 30 minutes are classified as meal periods and do not need to be paid as long as the employee is completely relieved of all duties.
Minor Break: At least 30 minutes for every 5 hours worked and 1 hour for every 8 hours worked for employees under 16.
Oklahoma defaults to federal law regarding breaks for workers aged 16 and over. If an employer chooses to provide a meal break, it must be paid only if it lasts less than 20 minutes. Breaks lasting longer than 30 minutes are classified as meal periods and do not need to be paid as long as the employee is completely relieved of all duties.
Meal Break: At least 30 minutes, unpaid, uninterrupted, and relieved of all duties, must be provided per 6 hours worked. No meal break is required for shifts under 6 hours.
6-13 hours and 59 minutes: 1 break
14-21 hours and 59 minutes: 2 breaks
22-24 hours: 3 breaks
Rest Break: 10 minutes paid based on hours worked.
2-6 hours: 1 break
6 hours and 1 minute: 10 hours: 2 breaks
10 hours and 1 minute: 14 hours: 3 breaks
14 hours and 1 minute: 18 hours: 4 breaks
18 hours and 1 minute: 21 hours and 59 minutes: 5 breaks
22 hours 1 min – 24 hours: 6 breaks
Minor Break: Workers under 18 receive the same meal breaks as adults; however, it is required that they get 15-minute rest breaks rather than 10-minute breaks.
Minor Break: 30 minutes per 5 hours for workers under 18 years of age.
Pennsylvania defaults to federal law regarding breaks for workers aged 18 and over. If an employer chooses to provide a meal break, it must be paid only if it lasts less than 20 minutes. Breaks lasting longer than 30 minutes are classified as meal periods and do not need to be paid as long as the employee is completely relieved of all duties.
Meal Break: 20 minutes for employees who work 6 hours and 30 minutes for employees who work an 8-hour shift. The break may be unpaid if the employee is relieved of all duties.
Note: There are exceptions such as healthcare facilities and employers with fewer than three employees.
Rest Break:No state-mandated requirements
Minor Break: Minors follow the same meal break requirement.
South Carolina defaults to federal law regarding breaks for all workers. If an employer chooses to provide a meal break, it must be paid only if it lasts less than 20 minutes. Breaks lasting longer than 30 minutes are classified as meal periods and do not need to be paid as long as the employee is completely relieved of all duties.
South Dakota defaults to federal law regarding breaks for all workers. If an employer chooses to provide a meal break, it must be paid only if it lasts less than 20 minutes. Breaks lasting longer than 30 minutes are classified as meal periods and do not need to be paid as long as the employee is completely relieved of all duties.
Texas defaults to federal law regarding breaks for all workers. If an employer chooses to provide a meal break, it must be paid only if it lasts less than 20 minutes. Breaks lasting longer than 30 minutes are classified as meal periods and do not need to be paid as long as the employee is completely relieved of all duties.
Minor Break: At least 30 minutes for lunch no later than 5 hours into the workday for employees under 18. They must also be given a 10-minute rest break for every 4 hours worked and cannot work 3+ consecutive hours without a 10-minute break.
Utah defaults to federal law regarding breaks for workers aged 18 and over. If an employer chooses to provide a meal break, it must be paid only if it lasts less than 20 minutes. Breaks lasting longer than 30 minutes are classified as meal periods and do not need to be paid as long as the employee is completely relieved of all duties.
Meal Break: Employees must have a “reasonable opportunity” to eat and use the restroom. This opportunity must be paid if it is less than 20 minutes.
Rest Break:No state-mandated requirements
Minor Break:No state-mandated requirements
Vermont has a special lactation break law requiring employers to provide reasonable break time throughout the day to employees who are lactating. It is left to the employer’s discretion whether these breaks are paid or unpaid unless denoted by a collective bargaining agreement.
Minor Break: At least 30 minutes for employees under 16 who work 5+ consecutive hours.
Virginia defaults to federal law regarding breaks for workers aged 16 and over. If an employer chooses to provide a meal break, it must be paid only if it lasts less than 20 minutes. Breaks lasting longer than 30 minutes are classified as meal periods and do not need to be paid as long as the employee is completely relieved of all duties.
Meal Break: 30-minute unpaid meal period required when working more than 5 consecutive hours. Must be given between 2 and 5 hours from the start of the shift. An additional 30-minute meal period is required if working 3+ hours beyond the scheduled shift.
Rest Break: At least 10 minutes for every 4 hours worked
Minor Break:
Ages 14–15: 30-minute meal break after no more than 4 consecutive hours; 10-minute paid rest break every 2 hours; may not work more than 2 consecutive hours without a rest break.
Ages 16–17: 30-minute meal break when working more than 5 consecutive hours (given between 2–5 hours from shift start); 10-minute paid rest break every 4 hours; may not work more than 3 consecutive hours without a rest break.
Minor Break: 30 minutes duty-free for employees under 18 working 6 consecutive hours. 16 and 17-year-olds must have 8 hours of rest between shifts if scheduled after 8 pm.
Wisconsin defaults to federal law regarding breaks for workers aged 18+. If an employer chooses to provide a meal break, it must be paid only if it lasts less than 20 minutes. Breaks lasting longer than 30 minutes are classified as meal periods and do not need to be paid as long as the employee is completely relieved of all duties.
Wyoming defaults to federal law regarding breaks for all workers. If an employer chooses to provide a meal break, it must be paid only if it lasts less than 20 minutes. Breaks lasting longer than 30 minutes are classified as meal periods and do not need to be paid, as long as the employee is completely relieved of all duties.
The main difference between a meal and a rest break is often its length. The typical meal break is 20-30 minutes and must be taken around midday, while a rest break is usually anywhere between 10-15 minutes and occurs at regular intervals throughout a shift.
As with lunch breaks, no federal labor law requires short breaks at work. Only a small number of states have local laws requiring employers to offer rest periods during work hours, and these short breaks almost always come in addition to a meal break. For instance, Colorado requires a 30-minute meal break when an employee works more than five consecutive hours, along with a 10-minute paid rest break for every four hours worked (or major fraction thereof).
Sometimes, however, it’s all just semantics.
Take Maine, for example. The Pine Tree State is the only one of these 11 states that does not have a “meal break” per see, but it does have a rest break, requiring 30 minutes for work periods of over six hours. Technically, it’s not a meal break, just a rest break, but you and I both know it’s used for lunch.
Minors and break laws
State laws typically afford minorsgreater break protections than adult employees. While most state meal break rules for adults automatically cover minors, some states impose stricter standards for those under 18. Delaware, for example, requires a 30-minute meal break for adults who work seven and a half hours, but minors must receive the same break after only five consecutive hours.
Some states that do not require meal or rest breaks for adult employees impose separate break requirements for minors. For instance, Louisiana requires employers to provide a 30-minute break to employees under 16 who work five consecutive hours, and Michigan requires a 30-minute break for employees under 18 who work more than five consecutive hours. In Hawaii, a similar five-hour rule applies only to 14- and 15-year-olds.
Managing rest and meal breaks
If your state has specific rest break requirements, it’s essential that management understands them and takes appropriate action to uphold them. Of course, this is sometimes easier said than done.
Without the right protocols and tools, tracking breaks can be challenging, especially in complicated states like California, Oregon, and New York. Luckily, there are many ways to automate the workload.
An online employee scheduling and time tracking platform like Workforce.com helps you manage break scheduling and missed break payments, reducing your risk of expensive missed break lawsuits. Here are a few specific ways the cloud-based system helps you plan lunch breaks and calculate compensation accurately:
Auto-schedule compliant breaks
Workforce.com’s scheduling allows managers to automatically apply compliant meal and rest breaks to employee schedules according to local state laws. Employees can easily view these breaks from their phones, knowing exactly when to work and rest.
Accurately pay missed break premiums
Using classification tags designed to handle California’s complex requirements, Workforce.com’s payroll system automatically flags when an employee misses a break and applies the correct premium pay to their timesheet. This ensures you’ll never underpay a staff member for a missed break again.
Track breaks in real-time
Via a time clock app, managers can see who’s working, who’s not, and who’s on break—all in one place and in real-time. This frontline visibility helps managers respond more quickly to lunch break non-compliance.
Utilize timesheet attestations
Managers can create conditional questions that appear whenever an employee clocks out of a shift. These questions may ask things like “Did you waive your break?” or “Did you take your break?” depending on the length of the shift. Answers will automatically add all necessary premiums and allowances to timesheets, ensuring employees are always paid accurately. These answers will also create a paper trail of agreed-upon waived breaks, protecting you from potential lawsuits.
Manage break rules across state lines
Workforce.com has robust team and location functionality, letting you set up multiple locations on the platform. Break rules at each location can be configured according to local state laws, ensuring chains stay organized no matter where they are in the country.
Support staff and protect your business with better breaks
There are two key things managers can do right now to ensure their business stays on the right side of the law. One is to understand and adhere to whatever legislation applies in your state. The other is to be clear about what breaks are allowed, encourage staff to use them, and ensure they are accurately recorded.
Doing all of this manually is a huge task and prone to human error. Instead, use employee scheduling softwareto automate how breaks are administered. Pair it with a specialized payroll system to quickly apply correct premium payments for missed breaks, and you’ll reduce your risk exposure tremendously.
Sound intriguing? Get in touch with us today, let’s talk about it.
But getting break times right doesn’t just reduce your risk exposure – it also makes for happier employees.
Shift workers deserve their breaks. Routinely taking time during a shift to eat, rest, and recharge always helps productivity and, most importantly, mental health.
Discover five more ways to boost employee mental health by tuning in to our free webinar below:
This information is for general purposes only and should not be considered legal advice. While we strive to keep it updated, labor laws and regulations can change at any time. It’s always a good idea to consult with a legal professional or relevant authorities to comply with the most current standards.
Federal law doesn’t require employers to provide employees leave, compensation, or benefits for jury duty-related absences. It is up to states and employers to determine these rules.
There are 10 states (including the District of Columbia) that require employers to pay employees serving mandatory jury duty.
18 states prohibit employers from requiring employees to use paid vacation or any other personal leave due to jury duty obligations.
While jury duty is legally required for those selected, most US citizens view it as not just a responsibility but also as an important civic function. According to Bar Prep Hero’s recent study, 60.2% believe jury duty should be mandatory for all citizens.
Some would rather avoid it if possible. Bar Prep Hero’s survey found that 9.2% admitted that they lied during jury selection in order to get out of jury duty. The biggest reason people want to avoid jury duty is that they see it as a financial inconvenience.
When employees have to attend court for jury duty, they are unable to go to work for as long as the trial lasts. And even though employees are required by law to fulfill their jury duty if summoned, employers in a majority of states are not obligated to compensate them for working hours missed as a result of jury duty.
Are you, as an employer, obligated to compensate or grant additional PTO to staff on jury leave? If you’re not sure, we’ve made a complete guide of jury duty laws by state to help you understand your legal obligations.
How does jury duty work?
Jury duty is not only a legal obligation but also an opportunity for American citizens to participate in their country’s judicial process firsthand.
The jury selection process differs slightly depending on the jurisdiction, but it most commonly includes the following steps:
Summoning potential jurors: Potential jurors are randomly selected from a pool of eligible individuals. This pool is usually compiled from voter registration lists, driver’s license records, or other sources, depending on the jurisdiction.
Questionnaires: Potential jurors must complete questionnaires, answering basic questions about their occupation, educational background, and any potential biases or conflicts of interest. Diversity is an important factor when selecting juries.
Jury panel selection: A group of potential jurors is called to the courtroom, and they are seated in the jury box. The judge and attorneys question potential jurors to determine their suitability for the case. The purpose is to identify any biases, prejudices, or personal experiences that could impact their ability to be impartial.
The judge and attorneys then select the final jurors who will serve on the jury for the trial. Their duty is to follow the trial proceedings — to listen to the evidence presented, witness testimonies, and arguments from both sides. Their duty is complete once the jury deliberates together and reaches a verdict based on the evidence and instructions provided by the judge.
While the length of your jury duty depends on the complexity of the trial, the Commonwealth of Massachusetts claims that most people finish their jury duty in a matter of one to three days in that state. Once a person has served jury duty, they will not be required to do so again for at least another three years.
What federal laws say about employer responsibilities regarding jury duty
According to the Fair Labor Standards Act (FLSA), federal law doesn’t require employers to provide employees paid leave for jury duty or with compensation or benefits.
However, state laws are a different matter. Some states require employers to pay an employee while they are serving jury duty. Many have laws protecting employees from being fired or penalized while serving jury duty. Several have laws requiring employers to allow employees to use their paid time off (PTO) if they wish to do so for jury service.
Employers also have the ability to create their own jury duty policies for employees. For example, employers in states that don’t require them to compensate employees for jury duty could create their own policy that does offer compensation in order to stand out from competitors in terms of employee benefits.
Jury duty laws by state
Many employees are not familiar with the laws regarding jury duty in their state. That’s why it’s important for human resources (HR) professionals to have a full understanding of their legal requirements regarding jury duty leave, as well as their company’s specific policies if any exist.
A total of 10 states (including the District of Columbia) require employers to pay employees who are called to serve mandatory jury duty:
Alabama
Colorado
Connecticut
Florida (Broward County and Miami-Dade County)
District of Columbia
Louisiana
Massachusetts
Nebraska
New York
Tennessee
There are also 18 states that explicitly prohibit employers from requiring employees to use any personal leave to fulfill their jury duty obligations.
Alabama
Arizona
Arkansas
Indiana
Louisiana
Maryland
Massachusetts
Mississippi
Missouri
Nebraska
Nevada
New Mexico
New York
Ohio
Oklahoma
Oregon
Utah
Virginia
Even though not every state mandates that employees be paid when serving jury duty, every state has laws against employers discharging or penalizing employers for serving jury duty — or threatening to do so.
For quick reference, check this table to see if your state mandates employers to pay for employee jury duty absences and if employees are required by law to use personal time off for jury duty.
State
Are employers mandated to pay for jury duty absences?
Are employers prohibited from requiring staff to use PTO for jury duty?
Alabama
Yes
Yes
Alaska
No
No
Arizona
No
Yes
Arkansas
No
Yes
California
No
No
Colorado
Yes – up to $50 per day of jury service for the first three days, unless a higher amount is agreed to between employer and employee
No
Connecticut
Yes – first five days of jury service
No
Delaware
No
No
D.C.
Yes for jury service carried out by full-time employees for five days or less, minus the fee received for jury service. Employers with less than 10 staff are not required to pay compensation for employees who serve as jurors.
No
Florida
Yes in certain counties. In Broward, employers must provide compensation to full-time employees for up to five days of jury service. In Miami-Dade, employees are entitled to pay when specific conditions are met.
No
Georgia
No
No
Hawaii
No
No
Idaho
No
No
Illinois
No
No
Indiana
No
Yes
Iowa
No
No
Kansas
No
No
Kentucky
No
No
Louisiana
Yes, but only up to a single day of service.
Yes
Maine
No
No
Maryland
No
Yes
Massachusetts
Yes, but only for the first three days of jury duty.
Yes
Michigan
No
No
Minnesota
No
No
Mississippi
No
Yes
Missouri
No
Yes
Montana
No
No
Nebraska
Yes, but their pay may be reduced by the fees paid by the court.
Yes
Nevada
No
Yes
New Hampshire
No
No
New Jersey
No
No
New Mexico
No
Yes
New York
Yes
Yes
North Carolina
No
No
North Dakota
No
No
Ohio
No
Yes
Oklahoma
No
Yes
Oregon
No
Yes
Pennsylvania
No
Yes
Rhode Island
No, unless required by contract or collective bargaining agreement.
No
South Carolina
No
No
South Dakota
No
No
Tennessee
Yes
No
Texas
No
No
Utah
No
Yes
Vermont
No
No
Virginia
No
Yes
Washington
No
No
West Virginia
No
No
Wisconsin
No
No
Wyoming
No
No
Here’s a more in-depth look at some states that have more specific jury duty laws:
Alabama
Alabama state law requires employers to grant paid leave for jury duty to full-time employees. To be eligible for paid leave, the employee must show their employer the jury summons on the next workday after receiving it.
If a company has five or fewer full-time employees, only one employee can serve jury duty at a time. The court will automatically postpone or reschedule jury duty if a second employee is summoned during the same time.
Colorado
Colorado laws require employers to pay employees up to $50 per day for the first three trial days of jury duty unless the employer has a policy in which they are obligated to pay more. This law includes not just full-time salaried employees but also part-time, temporary, and casual employees.
Connecticut
Connecticut laws stipulate that employers must pay full-time employees regular wages for the first five days of jury service. The only way employers can be excused from paying is by submitting an application to the Chief Court Administrator with proof of sufficient financial hardship.
Florida
There is no state law in Florida that requires employers to pay employees for jury duty. However, there are several county ordinances that do. In Broward County, employees must be paid a regular salary for up to five days of jury duty-related leave, provided that the employee gives a copy of the summons to their immediate supervisor at least five days before the first day of scheduled jury duty.
In Miami-Dade County, employers must pay employees for jury service if:
The employee has a regularly scheduled workweek of at least 35 hours.
The employee provides a copy of the summons at least five working days prior.
The employee is serving their jury duty in Miami-Dade County.
The employer has 10 or more full-time employees.
The employer has offices or does business in Miami-Dade County.
Georgia
Although Georgia law does not expressly require employers to provide paid leave for jury service, a 1989 Attorney General opinion addressed employer obligations under the state’s jury duty statute. The statute itself does not clearly state that private employers must provide paid jury duty leave.
Massachusetts
In Massachusetts, employers must pay employees at the regular rate for the first three days of jury duty. This includes part-time, temporary, and casual employees.
Nevada
In Nevada, employers are not required to pay any wages for time spent serving on a jury. However, they can’t require staff to work within eight hours of the time they’re supposed to serve.
Also, on the day of jury duty, employees can’t be required to work between 5:00 p.m. and 3:00 a.m.
New York
According to New York State laws, employers with ten or more employees must pay the first $72 of the employee’s regular daily wages for the first three days of jury duty.
Oregon
In Oregon, it’s common for employers to have internal policies that mandate regular pay for employees on jury duty; however, it is not legally required by the state. Employers are, however, prohibited from requiring staff to take personal leave for jury duty service.
Tennessee
Tennessee laws mandate that employers who have five or more employees must pay for time spent serving jury duty as long as the employee has been with the company for at least six months.
Create your own jury duty policies
All employers have the ability to create their own jury duty compensation policies regardless of what state laws mandate.
If you’re looking to develop your own employer policy, here are a few key areas to consider:
Legal obligations: Familiarize yourself with the state laws and regulations pertaining to jury duty. Understand the rights of employees and any legal obligations you have as an employer to accommodate them.
Criteria to qualify: Establish a process to verify employee eligibility for jury duty. Typically, employees may be required to provide a copy of their jury duty summons or a letter from the court confirming their selection.
Leave policies: Outline the specific time-off policies for employees serving on jury duty very clearly. For example, if you give them paid days off, determine whether jury duty days count against their PTO total.
Compensation: Decide how you will handle compensation. Determine whether employees will continue to receive their regular salary or another fixed amount per day.
Once created, focus on clearly communicating your policy to employees. Ensure they understand their rights and responsibilities related to jury duty and how the company will support them during their absence.
Consider expressing support and encouragement to employees who are serving on juries. Acknowledging the importance of their participation in the legal system will help foster a positive work environment that values civic engagement.
Manage jury duty absences easily with Workforce.com
Once you have developed your jury duty policy, it’s important to maintain accurate records of employees’ jury duty absences, leave taken, and any related compensation or benefits provided to help ensure compliance with legal requirements and facilitate fair treatment across the company.
Contact us today to learn how Workforce.com can help you easily comply with your state’s jury duty leave policies.
This information is for general purposes only and should not be considered legal advice. While we strive to keep it updated, labor laws and regulations can change at any time. It’s always a good idea to consult with a legal professional or relevant authorities to comply with the most current standards.
More than 20 states are raising their minimum wages in 2026, with many increases taking effect on January 1, 2026 and some scheduled later in the year as well.
The federal minimum wage has stayed at $7.25/hour since 2009, but 30+ states and Washington, D.C. have minimum wages above the federal floor as of 2026.
Because minimum wage rules vary by location and change over time, a reliable payroll system helps ensure accurate pay and compliance.
Employers in the United States are bound by different laws when it comes to minimum wage rates, depending on the state or even the city they’re in. The federal minimum wage rate is a fixed national rate set by the Fair Labor Standards Act (FLSA) and enforced by the U.S. Department of Labor (DOL).
As of 2026, the federal minimum wage remains $7.25 per hour, a rate that was last revised in 2009. At the same time, many states and local governments set minimum wages above the federal floor, meaning employers often need to follow state or city rules instead of the federal minimum.
When multiple minimum wage laws apply (for example, federal, state, and local), employers are generally required to pay the rate that provides the greatest benefit to the employee. In other words, the highest applicable minimum wage.
Several jurisdictions now have minimum wage rates far above the federal floor. As of January 1, 2026, Washington, D.C. has the highest rate in the country at $17.95 per hour. Washington State follows with a statewide minimum wage of $17.13 per hour, and New York’s Downstate regions (New York City, Long Island, and Westchester) have a minimum wage of $17.00 per hour, with the rest of New York at $16.00 per hour. Other states with relatively high rates include Connecticut at $16.94, California at $16.90, Hawaii at $16.00, and Maine at $15.10—all above the federal minimum of $7.25.
As an employer, it’s important to understand and stay current on all the laws and regulations regarding minimum wage increases or decreases. Using the right time tracking and payroll software ensures that you remain compliant with little effort.
Effective January 1, more than 19 states raised their minimum wage rates in response to inflation or according to previously enacted legislation. Four additional states are set to increase their minimum wage later in the year.
Overall, 30 states, as well as DC, Puerto Rico, Guam, and the Virgin Islands, have a minimum wage higher than the federal rate. Fifteen states, as well as the Northern Mariana Islands, use the federal minimum wage rate of $7.25 per hour. Five states have not adopted their own minimum wage rate law and, therefore, default to the federal rate of $7.25.
View all state minimum wages in the table below.
Note: states that raised their minimum wage in 2026 are denoted by an asterisk (*)
States with MW greater than federal
States with MW equal to federal ($7.25)
States that have not adopted a state MW law
*Alaska $13. (from $11.91) set to increase on July 1, 2026 to $14
Northern Mariana Islands
Alabama
Arkansas $11.00
Georgia
Louisiana
*Arizona $15.15 (from $14.70)
Iowa
Mississippi
*California $16.90 (From $16.50)
Idaho
South Carolina
*Colorado $15.16 (from $14.81)
Indiana
Tennessee
*Connecticut $16.94 (from $16.35)
Kansas
*District of Columbia $17.95 (from $17.50)
Kentucky
Delaware $15
North Carolina
Florida $14
North Dakota
*Hawaii $16 (from $14)
New Hampshire
Illinois $15.00
Oklahoma
*Maine $15.10 (from $14.65)
Pennsylvania
Maryland $15
Texas
Massachusetts $15
Utah
*Michigan $13.73 (from $12.48)
Wisconsin
*Minnesota $11.41 (from $11.13)
Wyoming
*Missouri $15 (from $13.75)
*Montana $10.85 (from $10.55)
*Nebraska $15 (from $13.50)
Nevada $12
*New Jersey $15.92 (from $15.49)
New Mexico $12.00
*New York $17 for New York City, Long Island, and Westchester County and $16 for the remainder of New York State
*Ohio $11 (from $10.70)
*Oregon $15.05 ($16.30 in Portland Metro Area and $14.05 in non-urban counties)
*Rhode Island $16 (from $15)
*South Dakota $11.85 (from $11.50)
*Vermont $14.42 (from $14.01)
*Virginia $12.77 (from $12.41)
*Washington $17.13 (from $16.66)
West Virginia $8.75
Virgin Islands $10.50
Guam $9.25
Puerto Rico $10.50
As of January 1, 2026, D.C. has one of the highest minimum wage rates in the country at $17.95 per hour, with a further increase scheduled for July 1, 2026..
State minimum wage laws often include exemptions or special wage categories for certain jobs or sectors. These may apply to roles such as tipped workers, agricultural employees, seasonal workers, or employees of small employers. For example, New Jersey’s 2026 minimum wage rules differentiate between large and small or seasonal employers and set separate requirements for tipped and agricultural workers under state law.
Some states set subminimum rates for minors, students, or trainees. For example, in Rhode Island (standard minimum wage of $16.00 in 2026), full-time students under 19 working for certain nonprofit organizations may be paid 90% of the minimum wage, which is $14.40 per hour.
Minimum Wage in New York
New York’s minimum wage has increased steadily since the state began a multi-year phase-in process in 2016. As of January 1, 2026, minimum wage rates in New York vary by region rather than employer size or industry. The minimum wage is $17.00 per hour in New York City, Long Island (Nassau and Suffolk counties), and Westchester County, and $16.00 per hour in the remainder of New York State.
Under current state law, scheduled increases apply through 2026. Beginning in 2027, New York’s minimum wage will increase annually based on the three-year moving average of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the Northeast Region, subject to statutory conditions that allow the state to pause increases under certain economic circumstances.
In earlier years of the phase-in, minimum wage increases applied at different rates depending on employer size and location. By 2026, however, the primary distinction is geographic. New York also maintains separate wage rules for tipped workers, allowing employers in certain industries to apply a limited tip credit toward the minimum wage when specific legal requirements are met. These rules vary by occupation and work conditions and are governed by state labor regulations.
Minimum Wage in California
As of January 1, 2026, the statewide minimum wage in California is $16.90 per hour, which is significantly higher than the federal minimum of $7.25.
After reaching $15 through a phase-in process that began in 2017, California’s minimum wage is now adjusted annually based on inflation as measured by the Consumer Price Index.
California has enacted industry-specific minimum wage requirements for certain sectors. One notable example applies to quick-service (fast food) restaurants with at least 60 locations nationwide, which must pay a minimum wage of $20.00 per hour under state law.
Minimum Wage in Illinois
The minimum wage for the state of Illinois increased by $1 from $14 to $15 on January 1, 2025, which means it finally reached the threshold following a series of increases that began in 2019.
Employers may pay tipped employees in Illinois a cash wage equal to 60% of the applicable minimum wage. Employees must still earn at least the full minimum wage after tips, and employers are required to make up any difference.
Rates are higher in Chicago, where the minimum wage is currently $16.60 per hour for employers with four or more employees.
Chicago tipped workers have a minimum wage of $12.62. Similar to the state minimum wage conditions, employers must cover the difference for tipped workers if their wages plus tips do not equal at least the full minimum wage.
Minimum Wage in Florida
Effective September 30, 2025, Florida’s minimum wage is $14 per hour. This is part of a gradual increase of $1 per year that will lead to a $15 minimum wage rate in September 2026.
Employers can count tips, meals, and lodging toward the minimum wage with specified restrictions on how much can be allocated to them.
State and federal law also allow subminimum wages or exemptions for certain categories of workers, including some agricultural, seasonal, domestic, and nonprofit employees, depending on the circumstances.
Coverage depends on both state and federal law, and employers must evaluate which rules apply to their workforce.
Minimum Wage in Nevada
Previously, Nevada had two minimum wage rates. In this two-tier system, employees who receive qualifying health insurance have a minimum wage rate of $10.25. However, if they do not receive qualifying health insurance, the minimum wage rate is $1 higher, at $11.25 per hour.
This long-standing two-tier system was eliminated in July 2024, where Nevada increased its minimum wage rate to $12.00 across the board for all employers, regardless of whether or not they offer health insurance. As of 2026, Nevada’s minimum wage remains $12.00 per hour, according to the U.S. Department of Labor.
Staying on top of minimum wage laws as an employer
With so many differences and exemptions that affect different states and even different cities within those states, it can be tricky for an employer to remain compliant with the law.
Industries where workers earn tips can be particularly tricky, according to Workforce.com’s chief strategy officer Josh Cameron, “In hospitality or anything where you earn tips, you can pay the staff a minimum wage much lower than the normal one. So it would be $7.50 an hour if they’re not tipped, but it’s $2.50 if it’s tipped. As long as they get enough tips to get them over that—it’s called the tip credit—then they can receive the lower $2.50 per hour from their employer.”
Apart from the legal implications and the hefty fines, underpaying employees can be a PR nightmare for your business. Andrew Stirling, Workforce.com’s head of product compliance, argues, “An underpayment scandal can bring companies to their knees. Customers can decide to take their business elsewhere. People are less likely to visit a restaurant or shop that has been reported for underpaying their people.”
Workforce management software like Workforce.com takes state and local laws into account. Workforce’s labor compliance software allows you to pay your staff in accordance with federal, state, and regional wage laws. This includes exemptions and special situations, including tipped employees.
The system remains up to date as laws change, and it also undergoes regular audits, ensuring you remain compliant and avoid unnecessary penalties.
Simplify compliance with Workforce.com
Workforce.com offers HR and payroll software that give you the resources you need to calculate pay and remain up to date in the ever-changing minimum wage landscape. You can apply new compliance rules to the system as new minimum wage rates are put in place and new legislation is passed.
The system calculates correct pay for all your employees based on minimum wage, hours worked, and overtime, automatically creating highly accurate electronic timesheets. These timesheets can then be exported directly into your payroll system for processing.
To learn more about how Workforce.com stays on top of minimum wages and pays staff accurately, book a call or start a free trial today.
This information is for general purposes only and should not be considered legal advice. While we strive to keep it updated, labor laws and regulations can change at any time. It’s always a good idea to consult with a legal professional or relevant authorities to comply with the most current standards.
Federal overtime laws require that employers provide overtime pay to those who work over 40 hours per workweek.
Many states have their own overtime laws. States that do not have their own overtime rules default to the federal law.
Many employers opt to use specialized payroll platforms that can automate overtime calculations and payments.
If you are in charge of hourly employees, it’s likely that there will be days, weeks, or even months when your staff needs to work extra hours. Whether that’s over a typical eight-hour workday or a 40-hour workweek, the federal government has made it mandatory to compensate all non-exempt employees. This is important as it protects workers and rewards them for the additional time they spend supporting your business.
Some states have their own overtime laws, while others do not. It’s crucial to stay informed on the current overtime regulations in your state. In fact, if an employer willfully or repeatedly violates overtime requirements, they will be subject to a civil money penalty of up to $1,000 for each violation.
Luckily, the laws themselves are relatively straightforward. Below we’ve compiled the federal laws along with a table outlining the overtime laws by state.
According to the US Department of Labor, federal laws on overtime pay are determined by the Fair Labor Standards Act (FLSA). The FLSA states that all non-exempt employees are entitled to overtime pay for working over 40 hours in a workweek. If an employee has exempt status, such as a salaried employee, you are not required to provide overtime.
The rate of overtime pay must be no less than time and a half their usual hourly rate of pay (or 1.5 times the regular rate of pay). Additionally, there is no limit to the number of hours an employee can work in any workweek.
A “workweek” is seven consecutive days or a fixed set of 168 hours. These seven days do not need to align with a typical calendar week or job starting time. As long as a fixed and regularly recurring schedule is established, employees should receive the overtime rate owed to them. Typically, overtime pay is included with the wages earned in a regular payday or pay period.
Forced overtime work
In most states, workers can be “forced” to work overtime by their company. Employers can schedule workers for any shift length or consecutive work days. Additionally, federal law does not require breaks to be provided to the employee. However, many states have mandatory breaks and paid rest periods. If a worker refuses to work overtime, the employer has a legal right to terminate the employee.
Salaried employees and other overtime exemptions
Various occupations and job duties are exempt from overtime pay. The standard salary level that currently exempts executive, administrative, and professional (EAP) employees is at $684 per week ($35,568 annually).
In April 2024, the U.S. Department of Labor issued a final rule that would have raised the salary threshold to $844 per week ($43,888 annually) effective July 1, 2024, with a further increase to $1,128 per week ($58,656 annually) scheduled for January 1, 2025. However, on November 15, 2024, the U.S. District Court for the Eastern District of Texas vacated that final rule nationwide. As a result, the 2019 salary thresholds are currently being enforced.
Examples of some exempt roles include (subject to FLSA conditions):
If a state does not have its own overtime laws, it must default to the federal law. However, if a state has its own overtime laws, the state law is added on top of the federal law. In other words, employers need to abide by whichever law is more generous and provides their staff with the highest earnings.
When it comes to remote workers who work in different states, the labor laws of the state in which they are physically located and perform work apply. This is true regardless of where the company is located. So if your company is based in New York, but your employee is working from California, you would follow California’s overtime laws for that employee.
A look at overtime laws by state
Column two denotes whether or not a state has a law establishing a daily overtime threshold and the rate at which these hours are paid. The dashes indicate that the state does not have any laws pertaining to daily overtime.
Column three lists each state’s weekly overtime threshold as well as the rate at which overtime is paid. States with notable exceptions or unique labor laws have links to their respective Department of Labor pages.
As you can see from the table above, the majority of states base overtime pay on a 40-hour workweek, defaulting to the federal law. However, some states require overtime pay based on the hours worked in a single workday or other unique exceptions. Below we’ve delved into a few examples of state-by-state exceptions. For other exceptions, click through the links in the table above.
In California, employers are required by law to provide 1.5x pay for every hour an employee works beyond:
40 hours in a workweek
8 hours in a workday
6 days in a workweek
Moreover, California also has a law in which an employer must pay 2x an employee’s regular hourly rate, also known as double time pay, if they work over:
12 hours in a workday
8 hours on the seventh consecutive day of work in a workweek
Alaska
Like California, Alaska’s state overtime law requires that employers pay overtime when a non-exempt employee logs more than 40 hours of work and eight hours in a workday. However, the overtime rules have a number of exemptions related to occupations in agriculture and aquatic work.
Colorado
Colorado’s state overtime law requires overtime pay for hours worked beyond:
40 hours in a workweek
12 hours in a workday
12 consecutive hours, regardless of the start and end time of the workday
Kansas
Unlike the conventional 40 hours of most states, Kansas overtime law requires employers to pay overtime when an employee has worked over 46 hours in a workweek. However, because the FLSA requires that overtime is awarded at 40 plus hours, Kansas businesses that are covered by the FLSA must follow the federal law. If not, they must follow Kansas’s overtime rules for non-exempt employees.
Minnesota
Minnesota’s state overtime law requires companies to pay overtime for those working over 48 hours in a workweek. Like Kansas, Minnesota businesses covered by FLSA must follow the federal law.
Stay on Top of Overtime
Overtime is expensive. While necessary at times, ideally, it should never be the norm. If you find yourself consistently paying out overtime hours even in the face of manageable workloads, something is probably wrong. Check out the free webinar below to figure out how to keep your labor costs low by drilling down on where you are overspending on overtime.
For the few times you do need to pay overtime, make sure you are doing it correctly. There are many ways to do this; however, manually tracking and calculating overtime hours is a dangerous game.
Workforce.com’s Payroll platform makes the hassle of recording, calculating, and paying overtime much easier. Through an extensive time clock system, employee overtime hours and pay are automatically compiled on electronic timesheets, helping you improve visibility, reduce errors, and avoid compliance risks. With special tags, you can customize multiple earnings rates to match your state’s specific overtime rules. These rates automatically trigger whenever an employee crosses into overtime.
To learn more about how Workforce.com can help you manage overtime, book a calltoday.
This information is for general purposes only and should not be considered legal advice. While we strive to keep it updated, labor laws and regulations can change at any time. It’s always a good idea to consult with a legal professional or relevant authorities to comply with the most current standards.
Payroll reports are documents that provide companies with insights into their payroll activities and tax liabilities.
While payroll reports are usually created for internal purposes, there are some mandatory tax and payroll-related forms that businesses need to submit to government agencies on a regular basis.
Every month, companies run payroll to pay all of their employees’ wages. This process requires the collection of data, such as hours worked from timesheets, gross pay, net pay, tax withholdings, and so on. This information provides insight into the inner workings of a company and can be used to populate different types of payroll reports.
Payroll reports are documents created by human resources teams to keep tabs on employee payroll data and a company’s tax liabilities. Depending on the type of payroll report used, these documents usually include information like pay rates, the number of hours worked, overtime logs, any withheld taxes, employer tax contributions, and the amount of paid time off (PTO) taken.
The importance of payroll reports
From small businesses to larger corporations, keeping track of payroll records is important for maintaining a good relationship with your employees, keeping your business running smoothly, and remaining compliant with tax regulations.
Payroll reports are great for:
Improving employee retention – Payroll reports include information on employee turnover. Monitoring employee churn could help uncover some issues that are standing in the way of your employee engagement. If you are losing more staff from a particular department, you might want to take a closer look to see what might be standing in the way of higher employee retention.
Using data for employee recognition purposes – Payroll software can track milestones, such as when someone is due for a review, a bonus, or a pay increase. Ensuring that such milestones are recognized and rewarded goes a long way toward increasing employee engagement.
Maintaining healthy cash flow – Because timesheets and payroll are housed in the same system, your reports include hours worked, overtime consumed, PTO, and sick days taken. Tracking hours worked helps you avoid underpaying or overpaying your staff, ensuring well-budgeted labor costs.
Managing taxes – Employers and business owners are responsible for paying company taxes as well as managing employee tax withholdings. Payroll reports help keep data better organized and ready for tax submissions and audits from the IRS.
Types of payroll reports
Payroll reports differ depending on the information you want to collect, your payroll provider, and any customizations you make to the reports. Some of the most common types of payroll reports are:
Payroll summary report
These reports contain payroll information about any individual employee, a department, or the company as a whole in a given date range or pay period. They include information such as net and gross wages, tax withholdings, and FICA tax deductions.
Payroll detail report
As the name suggests, this is a detailed report on a specific employee or department or the company’s pay history. The report shows every movement and activity separately.
Employee summary report
Also known as a pay stub report – this document contains an employee’s personal, pay, and tax information. Your employees should have access to all of their own summary reports.
Payroll tax liability report
These reports show all tax withholdings per employee, the amounts your company has paid to government agencies, and any pending amounts still owed to the government.
Retirement contributions
These documents show all payments you have made to employee retirement plans. Such retirement plans include 401(k) and 403(b).
Paid time off (PTO) report
This report provides employers with an overview of all PTO an employee has taken within a calendar year and how much time off they have left.
Mandatory government forms employers need to file
Payroll reports are internal documents and are rarely, if ever, submitted to external parties. An exception would be if a company is undergoing an audit by the IRS or a state entity or if a workers’ compensation claim is involved.
There are, however, other kinds of forms employers must submit on a regular basis to local, state, and federal governments. Much of the information needed for these forms can be found in your internal payroll reports, saving you a lot of admin time.
Some of the most common government tax reports and forms include:
Form 941 – An employer’s quarterly federal tax return that is used to report on federal payroll taxes and includes information like:
Employees’ wages
Federal income tax withheld
Medicare taxes and Social Security tax deductions
Employer contributions to Medicare and Social Security taxes
Form 940 – This is in relation to the annual federal unemployment tax return (FUTA tax). The FUTA tax is an amount that companies pay to contribute toward “unemployment compensation to workers who have lost their jobs.” The amount could be as much as 6% of the first $7,000 paid to every employee.
Form 944– This form is for small employers whose annual liability for social security, Medicare, and withheld federal income taxes is $1,000 or less. It is filed only once a year instead of every quarter.
Form W-2–A wage and tax statement that employees use to present total gross wage, tax deductions, and benefits. Employers must provide their employees with a copy of this form and present copies to federal, state, and local governments.
Form W-3–This form is howbusinesses submit a summary of their wage and tax statements to the Social Security Administration. It accompanies Form W-2. Both are due by January 31 of the following tax year.
Certified payroll report – This is a government-mandated report for contractors and subcontractors working on federally funded construction projects. Under the Davis-Bacon Act, certified payroll reports must be submitted to the contracting agency, typically usingForm WH-347 provided by the U.S. Department of Labor.
State payroll reports –These vary from state to state, particularly when it comes to the frequency of payments.
Local payroll reports –Insome states, taxes are charged at the city and county levels and have different due dates.
How to organize your payroll reporting process
Regardless of what type of internal payroll report you’re looking to adopt, there are four basic steps to help you get your process organized.
Identify the type of report you need. Choose the suitable report based on the insight you’d want to gain from your data. Once the report is chosen, identify what information you’ll need to collect to populate it.
Choose the frequency of reports. Unlike government reports, you are free to choose the time periods you’d like to report on. Quarterly reports might result in a lot of unnecessary work for your payroll team. You may decide that issuing annual payroll reports is enough to give you the insights you’re looking for while also avoiding unnecessary burnout.
Collect and input data. This step involves inputting the data you need into your payroll system. Workforce management solutions automate much of this process, making your life much easier while also reducing the possibility of human error.
Analyze your reports. Double-check your payroll reports to make sure the information you are presenting is accurate. Finally, you should make use of your report findings and the insights you have gained to improve your payroll processes.
Clear and accurate payroll reports with Workforce.com
The first step to getting the most out of your payroll reports is making sure that the data presented in them is accurate. This starts by making sure that things like hours worked and overtime taken have been recorded correctly.
Workforce.com accurately stores employee data, like pay rates, hours worked, breaks taken, and overtime used. Synced withscheduling, you can track labor costs and hour variances in real-time, perfecting employee time before it reaches payroll. And when you are ready, you can quickly export all timesheets right to your payroll system, setting you up to create the best possible payroll reports for your business.
With Workforce.com, you can generate customizable payroll reports tailored to your needs. You can choose from a library of report templates, and modify it according to your requirements.
Get clear insight into how you pay your employees, including total wage costs, employee compensation taxes withheld, net pay, PTO, payroll deductions, retirement contributions, and other relevant information concerning employee pay. You can filter this information by role, location, team, and employee.
But Workforce.com goes beyond payroll. It combines payroll, time tracking and HR data in one platform to give you a 360-degree view of your organization.
Workforce.com’s reporting tools can track workforce management metrics like attendance, shift acceptance, and missed breaks, helping you improve shift coverage, punctuality, and wage and hour compliance. On the HR side, it allows you to generate reports on performance reviews, incidents, and warnings to support coaching, policy enforcement, and people development.
Having all this data in one place helps you spot discrepancies, identify trends, make more informed decisions. You can clearly see what you pay, what your people do, and how your team is growing.
To find out more about how Workforce.com can help streamlinepayroll reporting, book a demohere.
Productivity in the US increased in the past year, which can indicate that businesses are adapting to disruptions following the largest decline experienced in 2022.
Employee engagement goes hand-in-hand with workplace productivity. Low engagement levels are expected to cost US$8.9 trillion or 9% of the global GDP.
Productivity is a key measure of efficiency in any organization, but how it’s defined and measured varies widely. For hourly teams, productivity is often measured in real-time, like how efficiently shifts are managed, how well teams keep up with demand, and how businesses balance labor costs with performance.
Understanding the direction of workplace productivity is essential, especially as wages rise, new technologies emerge, and workforce expectations evolve. Trends in efficiency, labor costs, employee engagement, and automation have a direct impact on hourly teams. Staying informed about the latest developments in these areas helps businesses stay ahead and adapt to changing workforce dynamics.
Let’s take a look at how productivity is evolving on a national scale and what organizations can do to keep pace with these changes.
Productivity rates and its impact on quality of life
Generally speaking, productivity has seen some peaks and valleys over the years. And it has a direct correlation with quality of life.
During a TED talk, Yves Morieux, managing director and senior partner at Boston Consulting Group, explained how a 3% increase in productivity per year leads to a doubling of the standard of living for every subsequent generation. If that growth is reduced to 1%, it will take three generations to double the standard of living – leading to every generation being less well-off than their parents. Sound familiar?
“They will have less of everything: smaller roofs, or perhaps no roof at all, less access to education, to vitamins, to antibiotics, to vaccination – to everything. Think of all the problems that we’re facing at the moment. Chances are that they are rooted in the productivity crisis,” shares Yves Morieux.
In 2022, the Bureau of Labor Statistics (BLS) reportedthe sharpest decline in productivity since 1947. Nonfarm productivity landed at 7.5% in the first quarter of 2022, the lowest since the third quarter of 1947. This reflects pandemic-related disruptions, supply chain issues, and labor shortages.
The BLS defines labor productivity (or output per hour) as the division of “an index of real output by an index of hours worked.” They calculate the productivity of “all persons.” This includes employees, business owners, and unpaid family workers.
However, productivity has since recovered, and the BLS saw a1.2% increase in labor productivity in nonfarm sectors. Productivity growth can indicate that businesses have adapted to automation, training, and better labor allocation.
Information from the BLS reflects economic trends, which can indicate changes in the labor market, wages, and overall productivity. It’s vital to stay abreast of these broader numbers and assess them with your own internal data so you can make better decisions and strategies for your team.
Hourly wage trends and impact on business costs
Hourly compensation continued to rise in the fourth quarter of 2024, with BLS reporting a 4.2% growth. Labor unit costs also grew by 3%.
As wages rise, businesses may face higher operational costs, which can lead to price adjustments for products and services. Labor forecasting becomes even more essential as employers balance staffing levels to maintain productivity without the risks of over- or understaffing.
Automation is also vital, especially for managers, in optimizing workforce management. Tools like time and attendance tracking, employee scheduling, performance management platforms, and payroll software can eliminate administrative burdens, allowing managers to focus on running a productive operation. With the right technology, managers can spend less time on routine tasks and more time analyzing data and making informed decisions to improve productivity.
Disengaged employees can cause lower productivity
Gallup’sState of the Global Workplace 2024 report shows that 62% of workers surveyed are disengaged, and low engagement is estimated to cost the global economy US$8.9 trillion or 9% of the global GDP.
The study also examined daily stress, finding that 41% of respondents experienced stress the previous day. While it’s important to note that the survey didn’t directly ask if the stress was experienced at work, consider that time spent in the workplace is also a significant factor in daily experiences and emotions.
Employee engagement is strongly linked to better business outcomes and employee retention. The study’s findings reiterate just how crucial it is for human resources professionals to prioritize employees’ mental health and maintain a good work environment to retain top talent, achieve higher productivity, and maintain healthier profits.
Automation and AI in hourly workforces
The adoption of AI and automation will continue in HR, and they’re expected to still play a major role in streamlining administrative processes such as hiring, onboarding, time tracking, labor forecasting, and payroll processing.
However, while AI is often associated with productivity gains, its impact is not always straightforward. Astudy found that 77% of workers using AI disclosed that it added to their workload, presenting unexpected challenges in achieving the efficiency improvements employers anticipate. Furthermore, 47% of employees using AI admitted they were unsure how to meet their employers’ productivity expectations despite the technology’s implementation.
Clearly, technology is only as effective as its implementation. While AI has the potential to drive efficiency and profitability, its success depends on how well it integrates into workflows and supports employees rather than burdening them. Leadership plays a crucial role in ensuring AI adoption leads to practical, measurable improvements rather than becoming a source of frustration or inefficiency. Business leaders that introduce AI without a clear, well-structured strategy risk making work more complicated, which can result in lost productivity.
AI adoption should go beyond industry trends and buzzwords. It should be a strategic investment that delivers tangible benefits for both businesses and their employees.
Flexibility and job satisfaction beyond remote employees
For office workers, flexibility and work-life balance is typically to remote work or hybrid work arrangements, where they have greater control over their schedules and can work from home. However, for hourly teams, flexibility takes on a different meaning—one that is just as critical to job satisfaction and overall employee experience.
For hourly employees, flexibility isn’t about location but about having clear work hours in advance. Since their roles typically require them to be on-site, knowing their schedules ahead of time allows them to plan for personal commitments, reduce stress, and maintain a healthier work-life balance. This level of predictability on their work times keeps employees engaged, while minimizing issues like absenteeism and productivity losses.
If you’re managing an hourly workforce, ensuring employees receive their schedules well in advance is one of the most effective ways to enhance job satisfaction, improve employee experience, and maintain a more reliable and efficient team.
Potential shifts with workweek structures
There’s a current push for a 32-hour workweek, and its potential benefits for salaried, white-collar workers are clear. Many can complete the same amount of work in a shorter period. But what about businesses that rely on non-exempt, hourly employees?
For hourly workers, wages are directly tied to time worked, meaning a reduction from a 40-hour to a 32-hour schedule could significantly impact take-home pay unless accompanied by an increase in hourly wages. For businesses, especially those operating 24/7, transitioning to a shorter workweek presents operational challenges, from scheduling to maintaining productivity levels.
While it is still not in effect, businesses should monitor developments closely and consider how changes could affect operations and employee compensation.
Boost productivity with Workforce.com
Frontline teams looking to boost productivity turn to Workforce.com for solutions like scheduling, labor forecasting, employee communications, recruitment, performance management, and payroll. Having all of these functionalities housed in a single, powerful system helps simplify work models and drive better results. Here are some of the ways Workforce.com can help you do exactly that:
Automating administrative processes
Cut time spent filling shift schedules with Workforce.com’s scheduling system. Instead of manually building schedules with spreadsheets, managers can create and populate shifts in minutes and ensure employees only do work they are qualified for. This helps prevent burnout among your team and safeguards employee well-being.
Managers can also automatically approve and amend timesheets in bulk with Workforce.com’s time and attendance software. Once timesheets are finalized and approved, they can be exported to payroll, where wages, overtime, deductions, withholdings, and incentives are calculated automatically, ensuring accurate and timely pay for employees.
By eliminating manual processes, businesses can significantly reduce administrative workload, allowing teams to focus on higher-value activities to increase revenue and improve employee experience.
Optimize Scheduling with AI-Powered Labor Forecasting
Workforce.com’s labor forecasting system employs AI to predict staffing needs based on historical sales, economic trends, booked appointments, ongoing events, weather, and practically any metric that’s relevant to your operations.
With data-driven insights, you can determine exactly how many staff you need, where they need to be, and when they need to be there, all while avoiding the unnecessary costs of over or understaffing.
Management and human resources can inform their team of upcoming shifts, scheduling conflicts, and shift changes instantly and across the board. While scheduling, managers can add important notes and reminders to shifts for specific employees. Important announcements can also be sent out by team or location.
Optimize manager duties
Workforce.com empowers managers with real-time insights into frontline operations. With time and attendance software, managers are instantly alerted when employees are running late or absent, approaching overtime, or missing scheduled breaks. In addition, managers can also offer up vacant shifts to qualified and available staff in case of no-shows or last-minute absences.
Workforce.com facilitates two-wayshift feedback with staff members. Management can provide staff members withfeedback on their performance per shift, and staff can also provide management with on-the-ground insights through feedback on staffing levels, communication, and teamwork.
Workforce.com has a proven track record of improving work productivity and employee satisfaction in various industries worldwide. Check out theseclient success stories orbook a demo today to see the platform in action.
Employers are legally required to withhold portions of employee paychecks for federal income taxes and FICA contributions. Employers may also withhold amounts for voluntary deductions such as retirement plans and health insurance premiums when authorized by employees.
Managing payroll deductions can be complex, involving intricate calculation rules, varying employee statuses and preferences, and ever-changing labor regulations.
Workforce.com simplifies payroll by automating accurate calculations and ensuring the correct deductions are applied every time.
Payroll deductions are withheld from an employee’s paycheck to cover taxes, garnishments, or benefits like health insurance. While federal and state taxes are statutory and legally mandated, options like retirement savings or supplemental insurance fall under voluntary deductions. Deductions are further classified as pre-tax or post-tax, depending on when they’re applied in the payroll process.In this guide, we’ll break down the types of payroll deductions, explain how they work, and share tips to ensure accuracy every pay period.
Mandatory vs. Voluntary Payroll Deductions
Payroll deductions are primarily mandatory or voluntary. As the name implies, mandatory deductions are amounts employees must pay and employers must withhold or deduct. This includes statutory deductions mandated by law, such as federal income taxes and Social Security.
On the other hand, voluntary deductions are amounts taken out of an employee’s paycheck with their consent. These are typically for retirement accounts, health insurance, and charitable donations.
Mandatory deductions
Statutory deductions
Statutory deductions are amounts that employers withhold from staff paychecks to meet tax obligations and fund essential public services like Social Security, Medicare, and state programs.
Here are the statutory deductions that employers must withhold to comply with the law:
FICA taxes
FICA (Federal Insurance Contributions Act) taxes are a type of statutory deduction used to pay for Social Security and Medicare.
Employees pay 6.2% of their salary toward Social Security tax. The contribution limit or cap on this amount is based on the wage an employee earns. For 2025, the wage base limit is $176,100.
Medicare tax is 1.45% of an employee’s pay and includes no cap. Employees who earn more than $200,000 could be subject to (based on their filing status) paying additional Medicare tax. More information can be found here on the Internal Revenue Service (IRS) website.
Federal income tax
Federal income tax is an amount deducted from every employee’s salary. The federal government sets different percentages to be paid as taxes on gross salaries based on a person’s income. The taxable brackets start at 10% and go up to 37% of someone’s gross pay.
Federal income tax is calculated progressively. That said, taxes on wages are not computed in its entirety by a certain percentage alone. It means that different portions of an individual’s income are taxed at increasing rates. For instance, a single individual has a taxable income of $65,000. That employee’s federal tax liability will be charged as follows according to 2025 rates:
10% on the first $11,925 = $1,192.50
12% on the next $36,550 ($48,475 – $11,925) = $4,386
22% on the remaining $16,625 ($65,000 – $48,475) = $3,635.50
Total Tax Liability:$9,214
State and local income taxes
Employers must also withhold state and local income taxes, depending on where their employees work or live. How these taxes are calculated varies. Some states follow a similar progressive model as the federal government, others impose a flat rate, and some states don’t impose income taxes at all.
In addition to how state income taxes are calculated, you need to be aware of reciprocity agreements if an employee works in one state and lives in another.
It’s important to note that while mandated by law, not all workers are subject to statutory deductions. For instance, independent contractors are not subject to Social Security or Medicare tax withholdings. If you need clarification on a worker’s classification, the IRS offers support through Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding. This form helps clarify whether a worker should be treated as an employee or an independent contractor.
Wage garnishments
Wage garnishments are payroll deductions based on a court order mandating an employer withhold a portion of an employee’s paycheck to pay for financial obligations or debt. Child support is a typical garnishment, but it can also be for other purposes, such as payments for student loans, tax debts, and court judgments for personal debts. The employer must calculate wage garnishments based on federal and state limits. As soon as the court order for garnishment is received, employers are obliged to apply the deduction and notify the employee.
Voluntary deductions
Unlike mandatory deductions, which fund government programs or fulfill obligations like child support payments, voluntary deductions are optional and enhance employee benefits. Common examples include:
Retirement contributions
Employees can voluntarily set aside funds for their retirement. Popular options include 401(k) plans and Individual Retirement Accounts (IRAs), which employees can opt into if offered by the employer.
Health and welfare benefits
Employees can also opt to have health insurance premiums deducted from their paychecks for themselves and their dependents. Contributions to a health savings account (HSA) can also be taken with the worker’s consent.
Supplemental insurance coverage
Premiums for additional coverage, such as extended group life insurance, are voluntary. While employers may provide a base plan, employees can pay extra for added protection directly from their paycheck.
Union dues
Union members can authorize their employers to deduct their union fees and dues from their paychecks.
Savings and investment programs
Payments for employee stock purchase plans or amounts allocated for direct deposit to savings plans are a couple of examples of voluntary deductions geared toward employee savings and investment.
Charitable donations
Employees can elect to have their donations to charity be deducted from their pay.
Voluntary deductions provide convenience to employees in managing their benefits and savings plans. However, employers must secure written authorization before processing these deductions to ensure compliance and transparency.
Payroll deductions are categorized as pre-tax or post-tax, depending on when they are taken from an employee’s earnings.
Pre-tax deductions are withheld from an employee’s gross wages and can reduce the employee’s taxable income. However, they may still be subject to FICA taxes. Common examples of pre-tax deductions include HSA contributions, health insurance premiums, and 401(k) contributions.
Pre-tax deductions also reduce the amount a business owner has to pay toward federal unemployment tax (FUTA). FUTA is the system that provides compensation to people who have lost their jobs.
On the other hand, post-tax deductions are withheld from an employee’s net pay, meaning taxes have already been calculated and applied. While they don’t reduce taxable income, benefits or contributions made in this category often provide tax-free withdrawals or benefits in the future. Examples include Roth IRA contributions, charitable donations, and wage garnishments.
Stay on top of payroll deductions with Workforce.com
Managing payroll deductions is rife with complexities and challenges, from navigating regulations and unique state rules to managing employee updates, multiple voluntary benefits, and garnishments. Without the right tools, these tasks can quickly become time-consuming and prone to errors. That’s where Workforce.com steps in.
Here are some of the ways Workforce.com can simplify payroll deductions.
Onboarding
Accurate payroll starts with proper employee classification. Workforce.com has a strong onboarding system that ensures you have all the necessary information to classify employees correctly. It also handles necessary paperwork such as employee contracts and tax forms such as W-4.
Centralized employee records
Workforce.com centralizes employee data within its payroll system, ensuring a single source of truth. Any updates to employee information, like changes to voluntary deductions, are instantly reflected across the platform, ensuring consistency.
Time and attendance tracking
Accurate payroll depends on precise time tracking, especially for hourly employees.
Workforce.com’s time-tracking system ensures employees clock in and out correctly using mobile devices or kiosks. Missed punches trigger alerts, so issues are addressed immediately. The data flows directly into payroll processing, ensuring accurate timesheets and gross wage calculations.
Payroll
Workforce.com has a payroll system to calculate employee wages based on classifications, pay rates, timesheets, and corresponding deductions according to what’s mandated and what employees authorize you to withhold. All of these are automated and can be done in minutes.
Recordkeeping
Workforce.com ensures that payroll records are kept safe and can be easily accessed in case of audits or employee inquiries.
Managing payroll deductions is crucial not only for complying with tax laws but also for maintaining employee trust. Understanding the nuances of these deductions is vital to ensuring regulatory compliance, optimizing payroll processes, and supporting employee financial well-being.See Workforce.com in action and learn how it can improve your payroll processing and more. Book a demo today.
