Author: Gus Anderson

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Canada Statutory Holiday Pay (2025)

Woz with a Canadian flag on the moon

Summary:

  • 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.

When a holiday strikes, it’s important for Canadian employers to know exactly how much they owe their staff in statutory holiday pay – getting this wrong can land you in hot water.

Monkhouse Law is all too familiar with this. In 2022, they filed a class action lawsuit against banking giant BMO for violating the Canada Labour Code. According to the suit, BMO failed to include variable compensation such as commission and bonuses in calculations for holiday and vacation pay owed to employees beginning all the way back in 2010.

Similar holiday pay cases have been brought against insurance companies RBC and Aviva for $800 million and $80 million, respectively.

Holiday pay rules

To avoid winding up with a multi-million dollar lawsuit on your hands, or at the very least, a mob of rightfully angry workers, it’s important to understand what you as a business owe in holiday pay and how to go about calculating it.

Workers in Canada get statutory paid holidays (also known as public holidays or general holidays) off and are entitled to compensation based on their previous weeks’ wages. This public holiday pay is generally calculated as 1/20 of an employee’s regular pay from the four work weeks leading up to the holiday. Variable compensation like vacation and commission is usually included in the holiday pay calculation, while overtime is not.

On top of this pay, most provinces mandate that anyone who works on a holiday receive time and a half for their trouble. This is a rule of thumb, however, and not always the case.

Listed below are more details on statutory holiday pay, broken down by several provinces:

 

Manitoba

Statutory holidays recognized: 

  • New Year’s Day
  • Louis Riel Day
  • Good Friday
  • Victoria Day
  • July 1
  • Labour Day
  • Orange Shirt Day
  • Thanksgiving Day
  • Christmas Day

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: on top of their statutory holiday pay, staff who work on a holiday earn premium pay, which is 1.5x their regular wage. 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.

 

New Brunswick

Statutory holidays recognized: 

  • New Year’s Day
  • Family Day
  • Good Friday
  • Canada Day
  • New Brunswick Day
  • Labour Day
  • Remembrance Day
  • Christmas Day

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 1.5x their regular rate of pay for the day on top of the statutory holiday pay.

 

Ontario

Statutory holidays recognized: 

  • New Year’s Day
  • Family Day
  • Good Friday
  • Canada Day
  • Victoria Day
  • Boxing Day
  • Labour Day
  • Thanksgiving Day
  • Christmas Day

Holiday pay: According to Ontario’s Employment Standards Act (ESA), employees get 1/20 of their wages from the previous 4 weeks before the week with a public holiday. This includes vacation but not overtime pay.

If employees work: employees receive 1.5x their regular rate for the day.

 

Quebec

Statutory holidays recognized: 

  • New Year’s Day
  • 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 1/20th of their wages from the 28 days prior to the holiday. Workers paid by commission receive 1/60th of their wages earned through a 12-week period. Overtime is not included in these calculations.

If employees work: Employees get paid for a regular day’s work at their normal rate on top of receiving holiday pay.

 

Saskatchewan

Statutory holidays recognized: 

  • New Year’s Day
  • Family Day
  • Good Friday
  • Victoria Day
  • Canada Day
  • Saskatchewan Day
  • Labour Day
  • Thanksgiving Day
  • Remembrance Day
  • Christmas Day

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

Yes, there are a lot of rules, exceptions, and intricacies to holiday compensation in Canada. To stay on top of it all, you need to track time and pay accurately. You also need to be executing the right calculations – sometimes at a very large scale.

Sure, you can use a handy-dandy holiday pay calculator found on the occasional government website. But you could also let software automatically do the work for you.

Time and attendance software not only tracks employee time on a daily basis, but it also calculates holiday pay, applying it directly to timesheets. You don’t have to worry about combing through four weeks’ worth of timesheets to calculate the right indemnity pay for a special day of the year.

Be prepared and get a system in place to calculate holiday pay for you.

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.

Sounds like a lot of work, right? Building demand predictions and determining labour ratios? The good news is that you don’t need to do all the work. Labour forecasting software makes this whole process easier, saving you admin time and cutting down on wasted time and a half pay.

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.

Get in touch with us today to get started.

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.

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Severance pay & final paycheck laws by state (2025)

Astronaut holding a paycheck

Summary

  • 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. 

Click here to see final paycheck laws

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:

  1. 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.
  2. 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.
  3. 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.
  4. 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:

  1. 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.
  2. 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.
  3. 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.

Webinar: How to Increase Manager Retention

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. 

State Final wages (voluntary resignation) Final wages (if employee is fired)
Alabama N/A N/A
Alaska Paid by the next scheduled payday that is at least three (3) working days after their last day worked. Within three (3) working days of termination (not counting weekends and holidays)
Arizona Paid by the next scheduled payday Within seven (7) business days or the next payday (whichever is sooner)
Arkansas Paid by the next scheduled payday Paid by the next scheduled payday. If employers fail to do so within seven (7) days of the next regular payday, they must pay double the wages due
California Within 72 hours or at the time of quitting (time periods may vary by industry) Immediately
(time periods may vary by industry)
Colorado Paid by the next scheduled payday Immediately 
Connecticut Paid by the next scheduled payday Paid by the next business day if discharged or fired. Next regular payday if laid off.
Delaware Paid by the next scheduled payday Paid by the next scheduled payday
District of Columbia Within seven (7) business days or the next payday (whichever is sooner) Paid by the next business day
Florida N/A N/A
Georgia N/A N/A
Hawaii Immediately or next scheduled payday, depending on date of final notice Immediately or next business day
Idaho 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)
Illinois Paid by the next scheduled payday Paid by the next scheduled payday
Indiana Paid by the next scheduled payday Paid by the next scheduled payday
Iowa Paid by the next scheduled payday Paid by the next scheduled payday
Kansas Paid by the next scheduled payday Paid by the next scheduled payday
Kentucky Paid within fourteen (14) days or the next scheduled payday (whichever is later) Paid within fourteen (14) days or the next scheduled payday (whichever is later)
Louisiana Paid by the next scheduled payday or within fifteen (15) days (whichever is sooner) Paid by the next scheduled payday or within fifteen (15) days (whichever is sooner)
Maine Paid by the next scheduled payday Paid by the next scheduled payday
Maryland Paid by the next scheduled payday Paid by the next scheduled payday
Massachusetts  Paid by the next scheduled payday or, in the absence of a regular payday, the Saturday that follows an employee’s resignation Immediately
Michigan Paid by the next scheduled payday. For employees engaged in any phase of the hand harvesting of crops, final pay must be given within 1 working day of termination. Paid by the next scheduled payday. For employees engaged in any phase of the hand harvesting of crops, final pay must be given within 1 working day of termination.
Minnesota Paid by the next scheduled payday that’s at least five (5) days after an employee’s last day but no more than 20 days after their final day Within 24 hours of receiving a demand from employee
Mississippi N/A N/A
Missouri N/A Immediately
Montana 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)
Nebraska Paid by the next scheduled payday or within two (2) weeks (whichever is sooner) Paid by the next scheduled payday or within two (2) weeks (whichever is sooner)
Nevada Paid by the next scheduled payday or within seven (7) days (whichever is sooner) Within three (3) days
New Hampshire Paid by the next scheduled payday or within 72 hours (if employee gives notice of at least one pay period) Within 72 hours of time of termination
New Jersey Paid by the next scheduled payday Paid by the next scheduled payday
New Mexico Paid by the next scheduled payday, unless there’s a written contract stating a designated period Within five (5) days after termination. But if pay calculation is based on tasks or commissions, final paycheck must be paid in 10 days.
New York Paid by the next scheduled payday Paid by the next scheduled payday
North Carolina Paid by the next scheduled payday Paid by the next scheduled payday
North Dakota Paid by the next scheduled payday As agreed upon by both parties. If there’s no agreement, the employee must pay via certified mail at an address designated by the employee.
Ohio Next regular payday or within 15 days of termination, whichever comes sooner. Next regular payday or within 15 days of termination, whichever comes sooner.
Oklahoma Paid by the next scheduled payday Paid by the next scheduled payday
Oregon Immediately if the employee gave 48 hours’ notice. Otherwise, within five (5) days or the next scheduled payday (whichever comes first) Next business day
Pennsylvania Paid by the next scheduled payday Paid by the next scheduled payday
Rhode Island Paid by the next scheduled payday or paid within 24 hours if the termination is a result of the liquidation, merger, disposal, or moving of the business out of state. Paid by the next scheduled payday or within 24 hours if the termination is a result of liquidation, merges, disposing of the business or moving the business out of state.
South Carolina Within 48 hours or the next scheduled payday — not to exceed 30 days Within 48 hours or the next scheduled payday — not to exceed 30 days
South Dakota Paid by the next scheduled payday or when employee returns any company property Paid by the next scheduled payday or when employee returns any company property
Tennessee Paid by the next scheduled payday or within 21 days (whichever occurs last) Paid by the next scheduled payday or within 21 days (whichever occurs last)
Texas Paid by the next scheduled payday Within six (6) days
Utah Within 24 hours Within 24 hours
Vermont Paid by the next scheduled payday, or, if there is no regular payday, the following Friday  Within 72 hours
Virginia Paid by the next scheduled payday Paid by the next scheduled payday
Washington Paid by the next scheduled payday Paid by the next scheduled payday
West Virginia Paid by the next scheduled payday Paid by the next scheduled payday
Wisconsin Paid by the next scheduled payday Paid by the next scheduled payday or 24 hours if the termination is due to a merge, company liquidation, or ceasing business operations
Wyoming Paid by the next scheduled payday Paid by the next scheduled payday

Get final paychecks right with Workforce.com

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. 

Webinar: How to Tackle Critical Workplace Issues

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.

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Paid Sick Leave Laws: State by State (2025)

Summary

  • There is no federally mandated paid sick leave law. 

  • The Family and Medical Leave Act (FMLA) may allow eligible employees to take up to 12 weeks of unpaid leave for certain health-related situations.

  • More than 20 states have implemented their own paid sick leave laws – see them here 

Paid sick leave refers to time off that workers can use if they are sick, injured, or require medical care. It can also be used when an employee needs to attend to a family member or loved one for medical reasons, including elder care or child care. Paid sick time also covers mental health and preventative care.

Some sick leave policies also cover leave when an employee or their loved one is a victim of sexual assault or domestic violence.

Different countries around the world have varying laws and policies surrounding paid sick leave, including the number of days allocated to an employee every calendar year, whether they can carry over an accrual of unused sick leave, and differences in entitlement between full-time and part-time workers. 

What federal law says about paid sick leave

The United States is the only nation with an advanced economy that does not offer its workers federally mandated paid sick leave. 

Although there are no requirements for regular paid leave at the federal level, there are rules that allow employees to take unpaid leave under certain circumstances. The Family and Medical Leave Act (FMLA) states that eligible employees can take up to 12 weeks of unpaid leave. This is used for “certain medical situations for either the employee or a member of the employee’s immediate family.”

Eligible employees are those who have worked with their current employer for at least a year and have done a minimum of 1,250 hours of work in the last 12 months. 

But that doesn’t mean Americans go without any sick leave benefits. According to the Bureau of Labor Statistics, 79% of US workers in the private sector had access to paid sick leave in March 2022. This figure varies depending on the industry, and, in fact, 54% of people working in the leisure and hospitality sector have paid sick time.  

As an employer or HR executive, you must first be aware if your state requires you to offer paid sick leave and under what conditions. If you’re not bound by law, sick leave is still something worth considering for the sake of your employees’ physical and mental well-being. 

Paid sick leave laws by state

Research shows that an average person works 10.5 days in a year while not feeling well and 47% said that they’d “power through” instead of taking a sick day.

This has led some states to implement their own sick time laws. Companies that fall outside of those states also have the option to implement their own policies. 

There are currently 22 states, including Washington D.C., that have paid sick time laws. Click on your state to get a brief overview of what you need to know:

Alaska

Arizona

California

Colorado

Connecticut

Maine

Maryland

Massachusetts

Michigan

Minnesota

Missouri

Nevada

Nebraska

New Jersey

New Mexico

New York

Oregon

Rhode Island

Vermont

Virginia

Washington

Washington D.C.

Alaska

Starting July 1, 2025, Alaska’s paid sick leave law will take effect.

Employers with 15 or more employees: One hour of paid sick leave for every 30 hours worked. However, employees are only allowed to use 56 or less hours in paid sick leave per year, unless the employer sets a higher limit. Employees with fewer than 15 employees can limit annual sick leave usage to 40 hours.

Arizona

Every employer, regardless of size or industry, must offer paid sick time to employees. Accrual rates are as follows:

  • Employers with 15 or more employees: One hour of earned paid sick time for every 30 hours worked. Employees are not entitled to accrue or use more than 40 hours of earned paid sick time per year unless a higher limit is set.
  • Employers with less than 15 employees: Minimum of one hour of earned paid sick time for every 30 hours worked. Employees are not entitled to accrue or use more than 24 hours of earned paid sick time per year unless a higher limit is set.

 California

Employers are required to provide most employees with at least 40 hours or five days of PSL (Paid Sick Leave) per year. Eligible employees include full-time, part-time, and temporary workers who meet the following criteria:

  • The employee works for the same employer for a minimum of 30 days within a year.
  • 90 days of employment have elapsed before they use any paid sick leave. 

Employers can offer sick leave in one lump sum at the beginning of the year or set up an accrual plan where an employee must earn at least one hour for every 30 hours worked.

Colorado

All employers are required to provide one hour of paid sick leave for every 30 hours worked, capped at 48 hours per year. 

Sick leave may be used for any of the following:

  • Mental or physical illness or injury
  • Bereavement or death of a family member
  • Absences due to domestic abuse or sexual assault
  • Need for a medical diagnosis, treatment, or preventative care
  • The care of a family member for any of the reasons listed above
  • Evacuation or care for a family whose school or place of care was closed due to an unexpected event such as inclement weather and power/heat/water loss.

Connecticut

Effective January 1, 2025, employers with 35 or more employees must provide one hour of paid sick leave for every 30 hours worked. The employees can accumulate a maximum of 40 hours each year. 

Employers choose the 365-day period by which paid sick leaves will be calculated. For instance, it could be based on the calendar year or an employee’s work anniversary. 

Employees can carry over up to 40 hours of unused paid sick leave to the next year.

Maine

Employers with 10 or more employees must provide one hour of paid leave for every 40 hours worked, maxing out at 40 hours in a year. Workers can only use their leave after they have worked a minimum of 120 days. 

Maine’s paid leave law is unique in that it is not limited to sick time – employees can use their accrued leave for any reason, including emergency, illness, sudden necessity, planned vacation, etc.

Maryland

Employees are entitled to one hour of paid sick leave for every 30 hours worked, up to 40 hours every year. They are not allowed to use sick leave within their first 106 days of employment. 

  • 14 or fewer employees: sick leave is unpaid
  • 15 or more employees: sick leave is paid

Massachusetts

Most employees earn up to 40 hours of sick time per year. They must earn at least one hour for every 30 hours worked. 

  • 11 or more employees: sick leave is paid
  • Under 11 employees: sick leave is unpaid

Government employees and students who work for their college or university do not qualify for earned sick time. 

Michigan

According to the Earned Sick Time Act, small business employees shall get one hour of earned sick time for every 30 hours worked and can use up to 40 hours of paid earned sick time in a calendar year unless the employer sets a higher limit. 

In Michigan, an organization is considered a small business if:

  • It has 9 or fewer employees at a time. 
  • Or in the current or previous calendar year, they had 10 or more employees for no more than 19 workweeks. 
  • They have had 10 or more employees for less than 20 workweeks in a year. Once they exceed 20 workweeks with 10+ employees, they lose small business status for the rest of the year and the following year. After that, they can regain it if they meet the criteria again.

All other employers must provide a minimum of one hour paid earned sick time for every 30 hours worked. Employees can use a maximum of 72 hours paid earned sick time annually unless there’s a higher limit imposed by the employer. 

Minnesota

According to the Earned Sick and Safe Time (ESST), employees earn one hour of sick and safe time for every 30 hours work and can accrue a maximum of 48 hours each year unless the employer sets a higher limit. 

Minnesota employees who are anticipated to work at least 80 hours and are not an independent contractor are eligible for this paid leave. 

Missouri

Unless there are legal challenges, Missouri’s paid sick leave law will take effect on May 1, 2025.

Eligible employees will earn one hour of paid sick time for every 30 hours they work.

Employers with 15 or more employees can cap annual paid sick time at 56 hours. For smaller employers, the cap is 40 hours per year.

Some workers are exempt from the law, including those in educational, charitable, religious, or nonprofit roles; employees who act as foster parents (in loco parentis); employees in retail or service businesses with less than $500,000 in annual gross sales; and incarcerated individuals.

Nebraska

Nebraska’s paid sick leave law will take effect on October 1, 2025. 

Employers must offer one hour of paid sick leave for every 30 hours worked. 

Workers for an employer with fewer than 20 employees can earn up to 40 hours of paid sick leave per year. While those working in a workforce with more than 20 employees can earn up to 56 hours of paid sick leave per year. 

Nevada

Employers with 50 or more staff must provide .01923 hours of paid leave for every hour of work performed. All employees, including part-time workers, are eligible. Hours may be frontloaded instead of accrued according to the discretion of the employer. 

New Jersey

Employers of all sizes must provide up to 40 hours of sick leave per year. The accrual rate equals one hour of sick leave earned per 30 hours worked. Full and part-time employees are covered. 

The following employees are not eligible for earned sick leave:

  • People employed in the construction industry under a union contract
  • Per diem healthcare workers
  • Independent contractors
  • Independent contractors who do not meet the definition of an employee under NJ law

Employees can carry over up to 40 hours of unused sick leave into a new year; however, they cannot use more than 40 hours of sick leave during that year. 

New Mexico

The Healthy Workplaces Act requires employers to provide one hour of paid sick leave (PSL) for every 30 hours worked. Both non-exempt and exempt employees are eligible for PSL. 

While employees may accrue PSL without limit, employers can cap its usage to 64 hours per year. Unused PSL must carry over into the following year, but the annual usage cap of 64 hours still applies.

Employers have the option to front-load PSL at the beginning of the year. However, even if front-loaded, employers must continue to track accruals since the Act requires employees to accrue leave as they work. Employers cannot limit or cap accrual but can restrict the amount of PSL an employee uses annually.

New York

New York State’s paid sick leave laws came into effect on April 3, 2020. Private employers with five or more workers and a net income of more than $1 million have to provide paid sick leave. Employers with fewer than five workers and up to $1 million net income have to provide unpaid sick leave. Employees accrue leave at a rate of one hour for every 30 hours worked. 

Federal, state, and local government employees are not covered by this law.

Employees can make use of their paid sick leave through a verbal or written request for any of the following reasons:

  • For mental or physical illness, injury, or health condition, regardless of whether it has been diagnosed or requires medical care at the time of the request for leave.*
  • For the diagnosis, care, or treatment of a mental or physical illness, injury, or health condition; or need for medical diagnosis or preventive care.

*This includes using leave for the recovery of any side effects of the COVID-19 vaccination.”

New York State also implements safe leave laws to cover time off when an employee or their family member has been the victim of domestic violence, a family offense, sexual violence, stalking, or human trafficking. 

The time off, in this case, can be used for a number of reasons, such as to seek help from a domestic violence shelter, meet with an attorney or social services, or file a complaint with law enforcement. 

Oregon

One hour of sick time for every 30 hours worked, capped at 40 hours per year. Employees can only start using their sick time after they have worked for at least 90 days. Independent contractors do not accrue sick time. 

  • 10 or more employers: sick time is paid 
  • 6 or more employees in Portland: sick time is paid
  • Fewer than 10 employees: sick time is unpaid

Rhode Island

Most employees have the right to accrue one hour of sick leave per 35 hours worked, capped at 40 hours in a year. Government employees and certain per diem nurses do not qualify for sick leave. 

  • 18 or more employees: sick time is paid
  • 17 or fewer employees: sick time is unpaid

Vermont 

Employees earn one hour of paid sick time for every 52 hours worked. A maximum of 40 hours of sick leave can be used per year. While employees begin earning sick time as soon as they start work, employers may choose to prohibit the use of sick time for up to one year. 

People who do not qualify for sick time include:

  • Government employees
  • Per diem health facility workers
  • People employed for a job scheduled to last 20 weeks or fewer
  • Employees who fall under school district or supervisory district union policies

Virginia

Employees accrue one hour of paid sick leave for every 30 hours worked. Paid leave can be carried over to the following year. Accrual and use of paid leave is capped at 40 hours annually, unless the employer sets a higher limit. 

However, employers may choose to frontload the paid sick leave, providing employees with the full annual amount upfront rather than having it accrue over time.

Washington

Employees earn at least one hour of paid sick leave per 40 hours worked. Unused sick leave balances of 40 hours or less are carried over to the next year. Employees can only begin using sick leave after 90 days of employment. 

Employees excluded from sick leave protections:

  • “White collar” employees in executive, administrative, computer, and outside sales positions
  • Certain agricultural workers
  • State or local government employees
  • Forest protection and fire prevention workers
  • See the full list here

Seattle has its own set of complex sick leave requirements separate to the rest of the state:

  • Employers with up to 49 employees: must offer one hour of paid sick time for every 40 hours worked. Carryover may be limited to 40 hours per year.
  • Employers with 50 to 249 employees: must offer one hour of paid sick time for every 40 hours worked. Carryover may be limited to 56 hours per year.
  • Employers with more than 249 employees: must offer one hour of paid sick time for every 30 hours worked. Carryover may be limited to 72 hours per year.

Washington D.C. 

The District of Columbia has varying sick time accrual rates depending on staff count:

  • 100 or more employees: no less than one hour of paid sick leave for every 37 hours worked, capped at 7 days per year. 
  • At least 25, but no more than 99 employees: no less than one hour of paid sick leave for every 43 hours worked, capped at 5 days per year. 
  • 24 or fewer employees: no less than one hour of paid sick leave for every 87 hours worked, capped at 3 days per year. 

 

Sick leave rules in cities & counties

The following cities and counties have their own sick leave rules independent of local state laws. If you operate a business in any of these areas, do some further research to see what kind of sick leave you owe your staff, if any. 

  • San Francisco
  • Oakland
  • Emeryville
  • Santa Monica
  • Los Angeles
  • Seattle
  • Portland
  • San Diego
  • Berkeley
  • Seattle
  • Tacoma
  • New York City
  • Westchester County
  • Philadelphia
  • Pittsburgh
  • Allegheny County
  • Montgomery County
  • Minneapolis
  • Chicago
  • Cook County 

Building your own paid sick leave policy

When creating your own sick leave policy, you want to offer your employees the flexibility they need to take time off when they need it. At the same time, you need to set up clear rules and procedures for doing so to avoid abuse, error, and unnecessary administrative work for your staff. 

Your policy should outline the rules and procedures behind requesting time off as well as a strategy for keeping track of employee accrual and how many sick days they have used. 

  • Set the rules for who is eligible for paid sick leave, the structure of your paid sick leave (accrual, lump sum, or unlimited), and any local laws that automatically apply to your policy. 
  • Design a procedure for requesting and taking time off. This should include the number of days’ notice required for planned sick leave, who they need to request sick leave from, what information they need to provide, and through which platform. 
  • Develop a strategy for recordkeeping that allows you to monitor how much leave has been taken, store any relevant documents, and avoid abuse. 
  • Automatically track accruals with software so that you aren’t burdening your HR team with tedious administrative tasks. Look into ways to have it so that sick leave is accrued, requested, recorded, and paid in the background with minimal need for calculation and data entry. 

Manage sick leave requests and stay compliant with Workforce.com

Once you have developed your paid sick leave policy, you need an employee scheduling, paid time off tracker, and payroll solution that streamlines the procedure of managing sick leave, keeps error-free records, calculates accurate pay and does all of this in line with state and local laws. 

Managing sick leave should be as simple as “set it and forget it.” Get in touch with us today to find out how Workforce.com can help you easily and automatically comply with your state’s sick leave standards. 

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.

Posted on

Child Labor Laws by State + Federal (2025)

Summary

  • Minor labor laws are in place to provide safeguards that prioritize the health, well-being, and education of young employees.  

  • Child labor laws in the US are designated by the Fair Labor Standards Act of 1938 (FLSA).

  • 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. (NOTE: if a box is blank, then there are no hourly or time restrictions for that age group in that state.)

 

Federal/FLSA

Alabama

Alaska

Arizona

Arkansas

California

Colorado

Connecticut

Delaware

Florida

Georgia

Hawaii

Idaho

Illinois

Indiana

Iowa

Kansas

Kentucky

Louisiana

Maine

Maryland

Massachusetts

Michigan

Minnesota

Mississippi

Missouri

Montana

Nebraska

Nevada

New Hampshire

New Jersey

New Mexico

New York

North Carolina

North Dakota

Ohio

Oklahoma

Oregon

Pennsylvania

Rhode Island

South Carolina

South Dakota

Tennessee

Texas

Utah

Vermont

Virginia

Washington

West Virginia

Wisconsin

Wyoming

District of Columbia

Guam

Puerto Rico

Federal/FLSA

Max number of daily hours, weekly hours, and days per week for:

  • 14 and 15: 8 hours per day, 40 hours per week when school is not in session. 3 hours per day and 18 hours per week when school is in session.
  • 16 and 17: None

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 
  • 16 and 17: None

Alabama

  • Work Permit: Mandatory if under 18

Max number of daily hours, weekly hours, and days per week for:

  • 14 and 15: 8 hours per day, 40 hours per week, 6 days per week when school is in session. 3 hours per day, 18 hours per week when school is not in session.

    Must have a 30-minute documented meal break for more than 5 hours.

  • 16 and 17: None

Night work is not allowed for minors of these ages during these hours:

  • 14 and 15: 7 pm (9 pm during student summer vacation) to 7 am 
  • 16 and 17: 10 pm before a school day to 5 am (up to age 19, if enrolled in school)

Alaska

Work Permit: Mandatory if under 17 or for 16 and 17-year-olds if the employer is licensed to sell alcohol.

Max number of daily hours, weekly hours, and days per week for:

  • 14 and 15: 40 hours per week during school vacations between 5AM and 9PM. When school is not in session, they can work for a total of 23 hours a week with work done between 5AM and 9PM.
  • 16 and 17: Max 6 days per week. 

Minors must have a 30-minute break when scheduled to work six consecutive hours or work five consecutive hours before continuing to work. 

Night work is not allowed for minors of these ages during these hours:

  • 14 and 15: Between 5AM and 9PM
  • 16 and 17: None

Arizona

Work Permit: Not required

Max number of daily hours, weekly hours, and days per week for:

  • Under 16: 8 hours per day, 40 hours per week when school is not in session. When school is in session, 3 hours per day, 18 hours per week.
  • 16 and 17: None

Night work is not allowed for minors of these ages during these hours:

  • Under 16: 9:30 pm (or 11 pm before a non-school day) to 6 am. For students working door-to-door sales or deliveries, prohibited hours are after 7 pm.
  • 16 and 17: None

Arkansas

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: 7 pm (or 9 pm before a non-school day) to 6 am.
  • 16 and 17: 11 pm (midnight before a non-school day) to 6 am before a school day (this is for 16-year-olds only – there are no requirements for 17-year-olds).

California

Work Permit: Required for minors under 18

Max number of daily hours, weekly hours, and days per week for:

  • 14 and 15: 8 hours per day, 40 hours per week when school is not in session. When school is in session, 3 hours per day, 18 hours per week.
  • 16 and 17: 8 hours per day, 48 hours per week when school is not in session. When school is in session, 4 hours per day (8 on a non-school day or any day preceding a non-school day), 48 hours per week.

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 (or 12:30 am before a non-school day) to 5 am.

Colorado

Max number of daily hours, weekly hours, and days per week for:

  • Under 16: 8 hours per day, 40 hours per week when school is not in session. When school is in session, 3 hours per day, 18 hours per week.
  • 16 and 17: None 

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.
  • 16 and 17: None

Connecticut

Max number of daily hours, weekly hours, and days per week for:

  • Under 16: When school is not in session, 8 hours per day, 40 hours per week. (Minors 14 & 15 are generally not permitted to work when school is in session)
  • 16 and 17: Generally, when school is not in session, 8 hours per day, 48 hours per week, 6 days per week. When school is in session, 6 hours per school day (8 hours on Friday, Saturday, and Sunday), 32 hours per week. But these hours may vary per industry. You can check the more detailed guidelines here.

Night work is not allowed for minors of these ages during these hours:

  • Under 16: 7 pm (9 pm July 1st – Labor Day) to 7 am.
  • 16 and 17: 10 pm or 11 pm (midnight if no school the next day) (depending on the establishment the minor is working in) to 6 am

 

Delaware

Work Permit: Mandatory for those under 18.

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, 18 hours per week. 
  • 16 and 17: When school is not in session, 8 hours per day, 40 hours per week. When school is in session, 12 hours per day, combined school and work.

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: No specific nightwork limitations, but minors are required to have 8 consecutive hours of non-work, non-school time in each 24-hour day.

 

Florida

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.
  • 16 and 17: Under Florida’s HB49 which went into effect in July 2024, certain restrictions has been relaxed for 16 and 17-year-old minors. They can exceed the 30-hour weekly limit provided there’s appropriate consent. If they’re scheduled to work 8 or more hours, they must have a meal break of at least 30 minutes after no more than 4 hours of continuous work. 

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. 

 

Georgia

Work Permit: Mandatory for those under 16

Max number of daily hours, weekly hours, and days per week for:

  • Under 16: When school is not in session, 8 hours per day, 40 hours per week. When school is in session, 3 hours per day, 18 hours per week.
  • 16 and 17: None

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
  • 16 and 17: None

 

Hawaii

Work Permit: Mandatory for those under 18

Max number of daily hours, weekly hours, and days per week for:

  • Under 16: 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, 18 hours per week. 
  • 16 and 17: None

Night work is not allowed for minors of these ages during these hours:

  • Under 16: 7 pm to 7 am (9 pm to 6 am during school breaks).
  • 16 and 17: None

 

Idaho

Max number of daily hours, weekly hours, and days per week for:

  • Under 16: 9 hours per day, 54 hours per week
  • 16 and 17: None

Night work is not allowed for minors of these ages during these hours:

  • Under 16: 9 pm to 6 am
  • 16 and 17: None

 

Illinois

Work Permit: Mandatory for those under 16

Max number of daily hours, weekly hours, and days per week for:

  • Under 16: When school is not in session, 8 hours per day, 48 hours per week, 6 days per week. When school is in session, 3 hours per day, 24 hours per week. The combined hours of school and work may not exceed 8 hours per day.
  • 16 and 17: None

Must provide a scheduled meal period of at least 30 minutes no later than the 5th consecutive hour 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 
  • 16 and 17: None

 

Indiana

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: Can work up to 8 hours on school days, 9 hours on non-school days, and 30 hours per school week. Written parental consent required for some hours.

Workers under age 18 must get a 30-minute break if they work for 6 or more consecutive hours.

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: Can work until 12:00 a.m.(16 year olds) or 1am (17 year olds) on non-school nights. Specific conditions apply and parental consent is required for some hours.

 

Iowa

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, 6 hours per day, 28 hours per week.
  • 16 and 17: May work the same hours as those who are 18 years old.

Night work is not allowed for minors of these ages during these hours:

  • Under 16: 9 pm (11 pm from June 1st – Labor Day) to 7 am.
  • 16 and 17: None

 

Kansas

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, 18 hours per week.
  • 16 and 17: None

Night work is not allowed for minors of these ages during these hours:

  • 14 and 15: 10 pm to 7 am
  • 16 and 17: None

 

Kentucky

Max number of daily hours, weekly hours, and days per week for:

  • 14 and 15: Three 3 hours per day on school day, 8 hours per day on 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 school day or 1 AM preceding non-school day. 

 

Louisiana

Work Permit: Mandatory for minors under 18

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, 18 hours per week. Minors under 16 must get a 30-minute break for 5 hours of work. 
  • 16 and 17: None but they must get an eight-hour rest break before the next day of work

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: 16-year-old enrolled minor: 11 pm to 5 am before a school day. 17-year-old enrolled minor: 12 am to 5 am before a school day.

 

Maine

Work Permit: Mandatory for those under 16

Max number of daily hours, weekly hours, and days per week for:

  • Under 16: When school is not in session, 8 hours per day, 40 hours per week, no more than 6 days in a row. When school is in session, 3 hours per day (8 hours on a non-school day), 18 hours per week, no more than 6 days in a row. 
  • 16 and 17: When school is not in session, 10 hours per day, 50 hours per week and there are less than 3 scheduled school days or during the first of the week, no more than 6 days in a row. When school is in session, 6 hours per day (8 hours on the last scheduled day of the school week), 24 hours per week with 3 or more school days in a week, no more than 6 days in a row.  
     

Night work is not allowed for minors of these ages during these hours:

  • Under 16: 7 pm (9 pm during school summer vacation) to 7 am
  • 16 and 17: 10:15 pm (12 am before a non-school day) to 7 am (5 am before a non-school day).

Maryland

Work Permit: Mandatory for those under the age of 18

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, 4 hours per day (8 hours on a non-school day), 18 hours per week. Must have a 30-minute break when working for more than 5 consecutive hours.
  • 16 and 17: None

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: No specific nightwork limitations, but minors are required to have 8 consecutive hours of non-work, non-school time in each 24-hour day.

Massachusetts

Work Permit: Required for minors under 18

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 on a school day (8 hours on Saturdays, Sundays, and holidays), 18 hours per week, 6 days per week.
  • 16 and 17: 9 hours per day, 48 hours per week, 6 days per week. 

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 (11:30 pm before a non-school day) to 6 am *Exception for restaurants and racetracks: 12:00 am to 6 am (only on a non-school night).

Michigan

Work Permit: Generally required for those under 18. Not required for minors 16+ who have completed the requirements for high school (or an equivalent) and provide proof to the employer. A work permit is also not required for 17-year-olds who have passed the GED.

Max number of daily hours, weekly hours, and days per week for:

  • 14 and 15: No more than 48 hours total school and work combined per week, 6 days per week.
  • 16 and 17: When school is not in session, a maximum of 48 hours per week. When school is in session, a maximum of 24 hours per week. 

Workers under 18 must have a documented uninterrupted 30-minute break if they work more than 5 hours.

Night work is not allowed for minors of these ages during these hours:

  • 14 and 15: 9 pm to 7 am
  • 16 and 17: 10:30 pm (11:30 pm on Fridays, Saturdays, and school vacations) to 6 am.

Minnesota

Work Permit: Mandatory for those under 16 during the school year

Max number of daily hours, weekly hours, and days per week for:

  • Under 16: When school is not in session, 8 hours per day, 40 hours per week. When school is in session, 3 hours per day, 18 hours per week. 
  • 16 and 17: None

Night work is not allowed for minors of these ages during these hours:

  • Under 16: 7 pm (9 pm outside of the school year) to 7 am
  • 16 and 17: 11 pm to 5 am before a school day, or 11:30 pm to 4:30 am with written permission from a parent or legal guardian.

Mississippi

Work Permit: Required for those under 16 in mills, canneries, workshops, and factories.

Max number of daily hours, weekly hours, and days per week for:

  • Under 16: 8 hours per day, 44 hours per week.
  • 16 and 17: None

Night work is not allowed for minors of these ages during these hours:

  • Under 16: 7 pm to 6 am
  • 16 and 17: None

Missouri

Certification requirements:

  • Age Verification: Not required
  • Work Permit: Required for minors under 16

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, 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.
  • 16 and 17: None

Montana

Max number of daily hours, weekly hours, and days per week for:

  • Under 16: When school is not in session, 8 hours per day, 40 hours per week. When school is in session, 3 hours per day, 18 hours per week. 
  • 16 and 17: None

Night work is not allowed for minors of these ages during these hours:

  • Under 16: 7 pm (9 pm outside of the calendar school year) to 7 am
  • 16 and 17: None

 

Nebraska

Work Permit: Required for those under 16

Max number of daily hours, weekly hours, and days per week for:

  • 14 and 15: 8 hours per day, 48 hours per week.
  • 16 and 17: None

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: None

 

Nevada

Work Permit: Mandatory for minors under the age of 14

Max number of daily hours, weekly hours, and days per week for:

  • Under 16: 8 hours per day, 48 hours per week.
  • 16 and 17: None

Night work is not allowed for minors of these ages during these hours:

  • Under 16: None
  • 16 and 17: None

 

New Hampshire

Work Permit: Mandatory for minors under 16

Max number of daily hours, weekly hours, and days per week for:

  • Under 16: When school is not in session, 8 hours per day, 40 hours per week. When school is in session, 3 hours per day, 18 hours per week.
  • 16 and 17: When school is in session, no more than 6 consecutive days nor more than 30 hours per week. When school is not in session, no more than 6 consecutive days nor more than 48 hours per week. Specific restrictions apply for minors employed in manufacturing and they may not work more than 10 hours per day in manufacturing, more than 101/4 hours per day in manual or mechanical labor, nor more than 8 hours per night, if working at night.

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
  • 16 and 17: None

New Jersey

Work Permit: Mandatory for minors under 18

Max number of daily hours, weekly hours, and days per week for:

  • Under 16: 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.
  • 16 and 17: During summer vacation, 10 hours per day, 50 hours per week. Outside of summer vacation, 8 hours per day, 40 hours per week, 6 days per week.

Night work is not allowed for minors of these ages during these hours:

  • Under 16: 7 pm to 7 am with limited exceptions
  • 16 and 17: 1 pm to 6 am while school is in session or after midnight on days not followed by a school day. When school is not in session 11 pm to 6 am or 3 am in restaurants and seasonal amusements.

New Mexico

Work permit: Mandatory for workers under 16

Max number of daily hours, weekly hours, and days per week for:

  • Under 16: 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: None

Night work is not allowed for minors of these ages during these hours:

  • Under 16: 7 pm (9 pm for non-school day) to 7 am
  • 16 and 17: None

 

New York

Work Permit: Mandatory for those under 18

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: 7 pm (9 pm from June 21st – Labor Day) to 7 am
  • 16 and 17: 10 pm to 6 am, while school is in session Midnight to 6 am, while school is not in session *Exception: With written permission from a parent and the school, 16 and 17-year-olds may work until midnight before a school day. 

North Carolina

Work Permit: Required for minors under 18

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, 18 hours per week. Youth workers must take a 30-minute break after five consecutive hours of work.
  • 16 and 17: None

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: 11PM to 5AM when preceding a school day for youth who are in grades 12 and below

 

North Dakota

Work Permit: Mandatory for minors under 16

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: None

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: None

 

Ohio

Work Permit: Mandatory for minors under 16 at any time as well as for 16 and 17 year olds during the school year.

Max number of daily hours, weekly hours, and days per week for:

  • Under 16: 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: None

Night work is not allowed for minors of these ages during these hours:

  • Under 16: 7 p.m. (9 p.m. June 1 to Sept. 1 and during school holidays of 5 school days or more) to 7 a.m., 7 p.m. to 7 a.m. in door-to-door sales.
  • 16 and 17: 11 p.m. before school day to 7 a.m. on school day (6 a.m. if not employed after 8 p.m. previous night) if required to attend school. 8 p.m. to 7 a.m. in door-to-door sales.

 

Oklahoma

Work Permit: Mandatory for those under 16

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.

    Must have one hour rest period for 8 consecutive hours worked or 30-minute rest periods for five consecutive hours worked. Breaks must be documented.

  • 16 and 17: None

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: None

 

Oregon

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
  • 16 and 17: None

 

Pennsylvania

Work Permit: Mandatory for minors under 18

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 on a non-school day), 18 hours per school week + 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 + 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:

  • 14 and 15: 7 pm (9 pm during school vacations) to 7 am
  • 16 and 17: 12 am (1 am before a non-school day) to 6 am

 

Rhode Island

Work Permit: Mandatory for minors under 16

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, 18 hours per week.
  • 16 and 17: 9 hours per day, 48 hours per week during the school year (no restrictions outside the school year).

Must have an 8-hour break between the end of a shift and the start of the next work day.

Night work is not allowed for minors of these ages during these hours:

  • 14 and 15: 7 pm (9 pm during school vacations) to 6 am
  • 16 and 17: 11:30 pm (1:30 am before a non-school day) to 6 am

 

South Carolina

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, 18 hours per week.
  • 16 and 17: None

Night work is not allowed for minors of these ages during these hours:

  • 14 and 15: 7 pm (9 pm during summer vacations) to 7 am
  • 16 and 17: None

South Dakota

Max number of daily hours, weekly hours, and days per week for:

  • Under 16: When school is not in session, 8 hours per day, 40 hours per week. When school is in session, 4 hours per day, 20 hours per week. 
  • 16 and 17: None
  • Minors younger than 14 years old may not be employed during school hours and later than 7PM

Night work is not allowed for minors of these ages during these hours:

  • Under 16: After 10 pm on a school night. 
  • 16 and 17: None

 

Tennessee 

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, 18 hours per week.
  • 16 and 17: None

Minor workers must have a 30-minute unpaid break if working six consecutive hours. Breaks should not be scheduled before the first hour of the work day.

Night work is not allowed for minors of these ages during these hours:

  • 14 and 15: When school is not in session, 9 pm to 6 am. When school is in session, 7 pm to 7 am.
  • 16 and 17: 10 pm to 6 am Sunday through Thursday (midnight is allowed up to 3 nights per week by 16 and 17-year-olds with permission from their parents).

 

Texas

Max number of daily hours, weekly hours, and days per week for:

  • 14 and 15: 8 hours per day, 48 hours per week. 
  • 16 and 17: None

Night work is not allowed for minors of these ages during these hours:

  • 14 and 15: 10 pm (midnight before non-school day) to 5 am
  • 16 and 17: None

 

Utah

Max number of daily hours, weekly hours, and days per week for:

  • Under 16: When school is in session, 3 hours a week, 18 hours a day. When school is not in session, 8 hours in a day and 40 hours in a week.
  • 16 and 17: None

Night work is not allowed for minors of these ages during these hours:

  • Under 16: 7 pm (9 pm on June 1 to Labor Day) to 7 am 
  • 16 and 17: None

 

Vermont

Work Permit: Mandatory for minors under 16 during the school year

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: None

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: None

 

 

Virginia

Work Permit: Mandatory for those under 16

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: None

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: None

 

Washington

Work Permit: Mandatory for those under 18

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 have a paid 10-minute break for every two hours worked and 30-minute unpaid meal break starting no later than 4 hours into the shift.
  • 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 have a paid 10-minute rest break every 4 hours of work and 30-minute unpaid meal break starting no later than 5 hours into the shift.

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.

 

 

West Virginia

Work Permit: Required for minors under 16

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, 18 hours per week.
  • 16 and 17: None

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: None

 

Wisconsin

Work Permit: Generally required for minors under 16

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, 18 hours per week.
  • 16 and 17: None

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: No restrictions, but minors working after 11:00 pm must have 8 hours of rest prior to the start of the next shift. 

 

Wyoming

Max number of daily hours, weekly hours, and days per week for:

  • Under 16: When school is not in session, 8 hours per day, 40 hours per week. When school is in session, 3 hours per day, 18 hours per week.
  • 16 and 17: None

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
  • 16 and 17: None

 

District of Columbia

Work Permit: Mandatory for those under 18

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: 8 hours per day, 48 hours per week, 6 days per week. 

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 
  • 16 and 17: 10 pm to 6 am

 

Guam

Work Permit: Mandatory for those under 16

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: 8 hours per day, 40 hours per week. 

Employers must provide a 30-minute meal period for every 4 hours worked.

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 (midnight on non-school nights) to 6 am

 

Puerto Rico

Work Permit: Mandatory for minors under 18

Max number of daily hours, weekly hours, and days per week for:

  • Under 16: When school is not in session, 8 hours per day, 40 hours per week, 6 days per week. When school is in session, 8 hours per day of school and work combined. 
  • 16 and 17: 8 hours per day, 40 hours per week, 6 days per week. 

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

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 follows the federal laws for minors under the age of 16. For minors ages 16 and 17, New York is slightly stricter than other states, prohibiting them from working 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 standing from the school they attend. Without this permission, they are prohibited from working after 10:00 pm on a school day. 

When school is not in session — during the summer, for example — they may work until 12 am without the need for written permission. 

Minor labor laws in Alabama

In Alabama, any minor under the age of 18 must have a Child Labor Certificate for each employer they work for. Minors can get a certificate from the school they attend. 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 district that the minor attends. Colorado also allows 14 and 15-year-olds to obtain a school release permit 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 almost any non-hazardous occupation. 

Workforce.com helps you stay in compliance with minor labor laws

Workforce.com’s scheduling, time & attendance, and payroll software 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.

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What is time and a half pay + how to calculate it

Summary:

  • Under the FLSA, time and a half is the rate at which non-exempt employees earn overtime for every hour worked beyond 40 in a week.

  • Calculate time and a half pay by multiplying an employee’s regular pay rate by a factor of 1.5 for every hour of overtime. However, the steps may differ depending on whether the employee is hourly or salaried, or if bonuses are included in their pay.

  • With HR and payroll software, employers can calculate time and a half pay automatically.

Understanding time and a half or overtime pay is essential if you employ non-exempt workers. While it might sound straightforward (extra pay for extra hours), FLSA rules and varying state laws can make it complicated. Mistakes in calculating overtime pay and identifying who qualifies can lead to non-compliance and penalties. This guide breaks down what time and a half is, how to calculate it, and how to stay compliant.

What is time and a half and how does it work?

Time and a half pay refers to the overtime pay that non-exempt employees are entitled to when they work for more than 40 hours a week, as mandated by the Fair Labor Standards Act (FLSA). It’s called time and a half pay because it’s equivalent to an employee’s hourly rate multiplied by 1.5 per hour of overtime.

Who qualifies for time and a half?

According to the FLSA , some employees are exempt from time and a half pay, while others are non-exempt. Exemption and non-exemption are driven by factors such as wages and the job duties performed.  So what makes an employee exempt from receiving time and a half pay?

As a general rule of thumb, most salaried employees are exempt from time and a half pay if they earn more than $844 in weekly pay or $43,888 in annual salary. This threshold took effect on July 1, 2024. Previously, the weekly wage limit was only $684. On January 1, 2025, the threshold will go up to $1,128 per week or $58,656 per year, and beginning July 1, 2027, these limits will be updated every three years, according to the US Department of Labor’s new ruling.

This means that hourly employees working standard 40-hour workweeks in the usual frontline industries (retail, hospitality, healthcare, etc.) are non-exempt and must receive time and a half pay if they go into overtime.

To know more about what makes an employee exempt or non-exempt, read this guide.

How to calculate time and a half pay

When calculating overtime pay for non-exempt employees , you need to understand how to do it for hourly and salaried workers. Hourly workers may take up the lion’s share of non-exempt workers entitled to time and a half pay , but it’s also vital to know how to calculate overtime pay for non-exempt salaried employees.

Calculating time and a half pay for hourly workers

Calculating time and a half for hourly workers is fairly straightforward because you’re already aware of their hourly rate . To compute overtime pay , look at this example and follow these steps. 

Say, Dave is an hourly worker who earns $13 per hour. For this week, Dave has worked a total of 50 hours. How much do you need to pay him, including overtime?  

1. First, you need to get the total regular wages for the week. Multiply the employee’s regular rate by 40 hours.

$13 x 40 hours = $520 in regular wages

2. To get the hourly time and a half rate, multiply the regular hourly wage by 1.5.

$13 x 1.5 = $19.5 per hour of overtime

3. Multiply the hourly overtime pay by the number of overtime hours rendered.

$19.5 x 10 = $195 of overtime pay

4. Add both regular and overtime wages. 

$520 + $195 = $715In this example, Dave should receive a gross pay amounting to $715, which accounted for regular 40 hours and 10 hours of overtime worked.

Calculating time and a half pay for salaried employees

Calculating time and a half pay for salaried employees requires an extra step to get the hourly pay rate because they are paid a fixed wage. 

For instance, Lisa earns a fixed weekly salary of $750, and she’s expected to work 36 hours. But for this week, she has worked a total of 48 hours. Here’s how you can compute her overtime pay.  

1. Find the regular hourly rate by dividing the fixed weekly salary by the employee’s fixed hours. 

$750 / 36 hours = $20.83 per hour of regular work

2. Calculate the employee’s total regular wages. 

$20.83 x 40 hours = $833.20

3. Multiply the regular hourly rate by 1.5 to get the time and a half pay rate.

$20.83 x 1.5 = $31.25 per overtime hour

4. Calculate the total overtime wages

$31.25 × 8 = $250.00

5. Add regular and overtime wages.

$833.20 (regular wages) + $250.00 (overtime wages) = $1,083.20

In this example, Lisa needs to get a total of $1,083.20 in wages that includes both regular wages and time and a half pay for 8 hours of overtime work. 

FLSA typically uses a 40-hour work week for overtime calculations, but companies can choose to pay overtime based on the weekly work hours agreed upon. For instance, Lisa’s employers can choose to start paying her overtime once she exceeds 36 hours, provided that there’s a specific company policy that states so.

Calculating time and a half pay with bonuses

Nondiscretionary bonuses should be included in the calculation of time and a half pay. Here’s an example of how you can compute the overtime pay with a bonus. 

For example, John earns $12 an hour, worked 48 hours this week, and received a bonus of $20 for perfect attendance. Here’s how to compute his regular pay and time and a half pay that accounts for that bonus. 

1. Calculate the straight-time earnings for the week by adding the total number of hours. 

$12 x 48 hours = $576

2. Add the nondiscretionary bonus. 

Total earnings (before overtime adjustment) = $576 + $20 = $596.

3. Calculate the new regular hourly rate based on the straight-time earnings for the week. 

$596 / 48 hours = $12.42 standard hourly rate

4. Multiply the new regular hourly rate by 40 to get the regular wages for the week. 

$12.42 x 40 = $496.8

5. Calculate the hourly overtime rate by multiplying the standard hourly rate by 1.5.

$12.42 x 1.5 = $18.63 per hour of overtime

6. Multiply the hourly overtime rate by overtime hours worked. 

$18.63 × 8  = $149.04

7. Add together the regular and overtime wages to determine total pay.

$496.80 (regular wages) + $149.04 (overtime pay) = $645.84.

In this example, John should receive $645.84 in total wages, which accounts for the attendance bonus he was entitled to. 

Nondiscretionary bonuses must be included in regular rate calculations. Additionally, the example assumes the $20 bonus applies to this specific week only. If it covered a longer period, the bonus would need to be allocated across those weeks to calculate an accurate weekly regular rate.

Human resources or payroll officers must first determine the period that the bonus covers and it should be accounted for according to that timeframe.

Common challenges when calculating time and a half pay

Calculating time and a half pay sounds simple on paper, but when accounting for federal and state rules, things can get tricky fast. While the overtime rate of 1.5 is straightforward, it’s easy to miscalculate.  Here are some of the common challenges when calculating overtime pay:

Classifying employees correctly

It’s always a question of whether an employee is exempt or non-exempt from FLSA and time and a half pay. Given the typical nature of their work, it’s easy to assume that only hourly employees are non-exempt, but it’s not as clear-cut as that. 

Remember that eligibility for time and a half pay is determined by the wages earned and the nature of the job’s tasks. Even salaried employees can be eligible for overtime, making it crucial to understand the rules and exemptions on the state and federal levels.

Understanding specific state laws

The minimum wage is $7.25 per hour for nonexempt employees under the federal law. However, state-based thresholds can vary quite a bit. For instance, the minimum wage in California is $16, and New York’s is $15. Meanwhile, states like North Carolina and New Hampshire have the same minimum wage as the federal government. 

The fluctuating workweek method also seems like an appealing way to lower overtime costs. However, it has many legal nuances and can be prone to calculation errors. Some states even prohibit it, such as California. 

Companies need to have a firm grasp of both federal and state requirements. In the case of calculating time and a half pay, the higher minimum wage or the rule that would benefit the employee should be applied. 

Accounting for differing pay rates between teams/shifts

Obviously, time and a half pay must be based on accurate pay rates in the first place – this is easier said than done, especially for employees who might receive varying pay rates. With this in mind, you’ll need to calculate time and a half pay rates according to the correct rates for every employee, no matter the team, shift, or role they work in.

Excluding nondiscretionary bonuses in the regular rate of pay

Bonuses, especially those that FLSA considered non-discretionary, should be included in the computation of the regular rate of pay. 

Nondiscretionary bonuses are predetermined in nature, such as attendance bonuses or bonuses for quality of work. Even if the employer has the option not to award the bonuses, it doesn’t mean that these incentives are discretionary. It’s nondiscretionary in nature because the employees are aware of the bonus and have an expectation of how and when they will receive it. 

Automate time and a half computations with Workforce.com

Calculating time and a half pay is not a walk in the park, and it can be daunting to understand the exemptions and rules under the FLSA and state-specific regulations. However, a payroll system like Workforce.com can help alleviate most of the uncertainty that comes with time and a half calculations. Here’s how:

Detailed onboarding checklists

Getting time and a half right starts before payroll even comes into play. It begins with employee classification and accurate pay setup. Workforce.com’s onboarding system ensures that each employee’s classification and pay rates are set up correctly from day one. Plus, it streamlines paperwork like signing contracts, filing W-4s, and submitting employee personal details. 

Accurate time and attendance tracking

When timesheets are accurate, it’s easier to compute wages for employees who work overtime; Workforce.com delivers this and more. As employees clock in and out via kiosk or mobile device, the system automatically generates digital timesheets containing regular hours and overtime hours .

Automated labor compliance

Workforce.com is built with a robust compliance engine that helps you pay staff in accordance with labor laws. In addition to calculating total hours worked and overtime pay, it automatically alerts you to potential conflicts with overtime laws, maximum-hour rules, and fair workweek regulations.

Real-time wage tracking

Workforce.com gives you complete insight into your operations. For example, a robust reporting suite lets you pull reports on daily labor spend across every team and location, letting you easily pinpoint where and when overtime hours occur. 

Alternative rate calculations

Aside from an employee’s regular pay rate, managers can assign alternative rates to teams or shifts on Workforce.com to help manage staff who work multiple roles. Whenever an employee works a specific role, the corresponding “team tag” automatically applies. This setup makes it easy to calculate time and a half pay even when juggling multiple pay rates for every employee. 

Powerful payroll

Because Workforce.com’s payroll system is housed in the same system as onboarding, time and attendance tracking, and employee scheduling, wage and overtime calculations become faster and more precise. With data synchronized across modules, there’s no need for duplicate profiles or manual re-entry. As a result, employees receive accurate paychecks every time.  

One of the best ways to avoid issues with time and a half is to never have to pay it in the first place. Check out our free webinar below to see what you might be missing when it comes to paying out excessive overtime.

Webinar: How to lower your overtime hours

If you want to learn more about how Workforce.com can help you manage your workforce while staying compliant with the FLSA and state-specific laws, book a call today.

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Webinar: How Tech Can Stop Turnover for Small HR Teams

Smaller HR teams are facing challenges in maintaining employee loyalty due to being overwhelmed with various responsibilities.

It’s understandable that focusing on employee engagement can be difficult in such circumstances. However, utilizing technology can be a game-changer for lone HR managers looking to enhance employee loyalty.

This webinar aims to address these challenges by offering insights into leveraging technology solutions. By exploring both free and investment-worthy options, HR pros can learn how to create compelling job descriptions, cultivate loyalty beyond competitive compensation, and leverage the unique dynamics of small companies.

We brought on Retensa’s CEO, Chason Hecht, as well as talent specialist & Director of Employee Experience, Dana Small, to discuss free and premium tech tools that HR can use to offload nearly 30% of their admin work.

Check out the list below as well as the full webinar here:

12 free & investment-worthy tools to…

Streamline the Hiring Process:

1. ONET.com: This occupation keyword search directory allows recruiters to quickly identify and match job descriptions with relevant skills and competencies. It helps create accurate job postings and ensures candidates’ qualifications align with job requirements, speeding up the screening process.

2. Applicant Tracking System: An ATS automates the recruitment process by managing job applications, screening resumes, and tracking candidates throughout the hiring pipeline. It reduces manual tasks, ensures compliance, and helps prioritize top candidates, making the hiring process faster and more efficient.

3. Applicantstack.com: ATS platform that streamlines recruitment by automating job posting, resume management, and candidate communication. It helps organize and track applicants, reducing the time spent on administrative tasks and improving the efficiency of the hiring process. If you have a few positions open it costs less than $50 a month. If you hire more, unlimited jobs for $100 a month. You can also leverage it for onboarding if your budget is higher.

4. Claude AI: Assist with candidate screening by conducting preliminary interviews, answering candidate questions, and gathering necessary information. This reduces the time spent by human recruiters on initial interactions, allowing them to focus on qualified candidates. Also, this tool reduces your hiring data into interactive, understandable visuals. Leverage this to summarize the candidate pipeline.

Enhance Onboarding:

5. MS Planner: A simple but capable project management tool that can be customized for onboarding. It allows HR teams to create visual boards with tasks, checklists, and timelines for new hires. Free with Office 365.

6.  Loom: Allows you to create video tutorials and walkthroughs that can be shared with new hires. This is especially useful for remote onboarding, where face-to-face interaction is limited.

7. Free Fuse: Free Fuse offers a tool to build interactive learning trees that can be used to train and onboard candidates faster. By using this tool, employers can provide potential hires with bitesize information, assessments or onboarding materials, automating the learning process based on their learning pace and performance. Fully functional basic package is free.

8.  Leverage Learning Management Systems (LMS): Libraries of courses and topics for technical and soft skill development.

Create a Retention Environment:

9. TalentPulse: A turnkey employee feedback platform that captures real-time insights at every stage of the employee lifecycle. Automates and reports on employee sentiment through questions, surveys and 360’s, helping organizations identify real-world issues to better engage and inspire the workforce. Any 1 of 24 surveys can be sent for free up to 5 responses.

10. Flexible Scheduling: Schedule staff in minutes & reduce labor costs 11%

  • Create fast and accurate schedules with templates,
  • staffing ratios, and shift swapping.

Lower Turnover Rates:

11. ExitPro: Provides secure and streamlined Exit Interview program in minutes. With several pre-built exit interview question templates, instant exit interview reports, and a suite of tools to predict and prevent employee turnover. A Free trial can last up to 12 months and unlimited exit interviews for as little as $79/month.

12. Notion AI: Notion AI is an advanced feature within the Notion platform that leverages artificial intelligence to enhance productivity and organization. For employee retention, Notion AI can assist in creating personalized onboarding experiences, maintaining detailed employee records, and automating repetitive tasks

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11 HR Basics for Small Businesses

Summary:

  • Statistics show that small businesses employ 61.6 million people in the United States, almost half (45.9%) of the US workforce.
  • With lean HR teams, small businesses must learn how to properly prioritize HR-related tasks.
  • Human resource management has many areas, and technology can simplify it for small businesses. Workforce.com is a best-in-class platform that helps small businesses with employee relations, labor compliance, payroll, and more.

Small business owners wear many hats—manager, marketer, strategist, and sometimes even accountant. However, one of the most crucial roles you play is that of a human resources (HR) manager.

While your business may be small, it’s vital to establish solid HR practices. From hiring your first employee to managing a growing team, understanding HR basics is key to fostering a positive company culture and ensuring legal compliance. 

Whether you’re personally handling HR tasks or entrusting them to someone on your team, here are 11 HR basics to focus on for your small business.

1. Labor compliance

Regardless of size, businesses are governed by labor laws under the local, state, and federal governments. This includes rules around employee classification, minimum wage, overtime, anti-discrimination, and workplace safety. 

As a small business, it’s vital to familiarize yourself with applicable employment laws to remain compliant and ensure that your policies are aligned with labor rules. Furthermore, some rules may differ for small businesses and large corporations, so constantly checking and verifying is best. 

For instance, in Massachusetts, businesses with 11 or more employees must provide paid sick leave, while those with fewer than 11 employees are only required to provide unpaid sick leave. 

If you have doubts about the proper protocol for employing someone, you should always consult your state’s Department of Labor.

2. Employee handbook

An employee handbook is more than just an administrative document; it’s a vital tool that sets clear expectations, promotes consistency, and protects your business and employees. But most importantly, from an employer’s perspective, a handbook helps defend against employee lawsuits. Small businesses must prioritize having a well-crafted handbook from the start. 

An employee handbook provides a foundation for a cohesive workplace, ensuring everyone is aligned with company policies and procedures. Sure, employees may memorize only some of the policies in one sitting, but it pays to have this document readily available so they have something to refer back to. It’s vital for clarifying HR policies, work hours, code of conduct, benefits, leave policies, disciplinary procedures, termination process, separation agreements, and emergency procedures. 

Creating a thorough and compliant handbook is a must to prove your business exercises “reasonable care” towards staff. Don’t skip it; otherwise, you will most likely be in for a world of hurt in the future.

3. Job descriptions

Small businesses also need to have job descriptions for every position. And no, I do not mean job postings. I mean job descriptions. These are internal documents that outline critical responsibilities, required skills, expectations, and qualifications for each role in your company.

Referring to job descriptions is extremely useful for things like performance management, promotion, hiring, and terminations.Writing multiple job descriptions may be daunting and time-consuming, especially if you don’t have any in place and are trying to catch up. To help you get started, here are customizable job description templates that you can use.

4. Recruitment

A core area of HR is recruitment. Hiring employees is difficult, especially if you’re just now beginning to build your workforce.

Small businesses should create a recruitment process that outlines job postings, interviews, and background checks. Remember that HR is typically the first point of contact for potential hires, so ensure that you have a straightforward process of how recruitment will go. In addition, see to it that you’re not violating any anti-discriminatory laws.

5. Onboarding

Another vital part of HR is onboarding. A crucial step in this stage is gathering all necessary information and paperwork from an incoming team member. These include employee classification, W-4 and I-9 forms, social security numbers, bank details, marital status, and e-signatures.

Onboarding also integrates new hires into the company. An onboarding plan or roadmap should include steps that cover policies and procedures, training, company culture, and what’s expected of a new employee within the first week, first month, first 60 days, and so on.

Also read: Creating a Better Onboarding Process for Hourly Staff

6. Time and attendance tracking

Time tracking is the backbone of paying your employees correctly. Establish a process for capturing this information to ensure accuracy. Aside from employee time punches and overtime, you must also monitor your staff’s time off and leave balances.

There are several ways to track employee work hours. You can opt for paper timesheets, which are physical records of clock-ins and clock-outs. While simple to use, these are easily tampered with and time-consuming to verify. You can also use punch cards. While more straightforward to implement than paper timesheets, punch cards require clunky time clock machines – prone to mechanical failure and susceptible to buddy punching.

Cloud-based software is another option to track employee time. It can be automated and used across devices like cell phones, tablets, and desktop computers. Software like this typically has additional features to verify timesheets and prevent time theft. Whatever method you choose, go for one that will help you streamline the process of timesheet approvals; this is an area that can take up a lot of your HR admin time.

7. Employee scheduling

Employee scheduling is another significant part of running a business, big or small. While not typically a function of HR, in a small business the HR manager or owner typically will find themselves involved in creating and managing shift schedules.

Scheduling may seem straightforward, but it goes beyond setting and assigning shifts to staff. It is the art of balancing demand versus the number of employees you need to schedule. This is especially true for hourly workforces in the hospitality, restaurant, and retail industries.

Furthermore, you also need a process for when an employee can’t make it to work at the last minute. How do you find available qualified staff? It pays to have a set of steps to follow in such situations so you don’t end up short of people.

8. Payroll

Running payroll involves computing and distributing employee wages and salaries. Typically, you can run payroll yourself with the help of software, or outsource the work to a payroll service company. If you choose to calculate payroll yourself, you’ll need to track hours worked, employee classifications, applicable overtime, tax withholdings, benefits, and deductions. A lot goes into every pay run, and it can be more complex when you have hourly workers. 

Here are some of the basics you’ll need to start running payroll:

  1. Employer Identification Number
  2. W-4 Forms
  3. I-9 Forms
  4. State tax withholding forms
  5. Direct deposit authorization forms

You also need to establish a payment schedule. Payroll can be released weekly, bi-weekly, semi-monthly, or monthly. To determine which makes the most sense for you, consider business needs, cash flow, industry practices, and state laws or payday requirements.

9. Performance management and feedback

HR departments, whether in a small company or a big corporation, must implement a system for regular employee performance reviews. This is to retain top talent, boost employee engagement, and identify areas where more training may be needed. You must ensure that staff are on the right track and know the value they bring to the organization. When your employees are thriving, so does your business. It also pays to have a program for recognition and rewards to maintain morale and keep your team motivated. 

Performance reviews are not always formal sit-down meetings every month or quarter. In fact, it can be more spontaneous and informal. Coaching can be more in the moment, especially when your managers are on the floor with the team. 

Gathering employee feedback is also an important part of this. Setting up a system where staff can tell you what’s working and what needs to improve is advisable. Use the feedback to optimize your operations and spot potential problems. 

10. Employee development and training

Training and development is an excellent followthrough to your feedback process. Provide training opportunities to help employees develop their skills and advance their careers. This is a good step in preparing them for a more significant role. In some cases, though, additional training is conducted to bridge a gap and bring employees to where they currently are to where you want them to perform. 

It’s also vital to conduct compliance training. Ensure employees receive mandatory training, such as sexual harassment prevention or safety training.

11. Recordkeeping

HR is also responsible for maintaining accurate and confidential employee records such as personal information, performance evaluations, and disciplinary actions. They must also secure compliance documentation and compliance records, such as employment eligibility and payroll records. 

Why is HR important for small businesses?

Small businesses must prioritize HR because it’s the backbone of any operation. Whether you have a dedicated team or just one person to oversee it, you must perform HR responsibilities. You need to be compliant, hire for essential roles, retain top talent, and pay employees correctly to succeed.

While there may be some differences between laws for small businesses and big corporations, the fact remains that HR-related responsibilities exist for both. 

As a small business, prioritizing HR this early gives you an advantage because you can set the tone early and ensure your business is on the right track. It may require a lot of hard work now, but instilling these habits and processes early on will make it easier for you as your business grows.

The benefits of HR software for small businesses

Properly managing the full scope of HR is a daunting prospect for a small business. Typically, HR takes a backseat to more functional duties that keep a business running on a daily basis. However, by using software to shoulder some of the responsibilities of HR, smaller businesses can successfully set up a strong foundation and push through some key initiatives.

Here are the benefits of HR technology and why investing in it is a wise investment for small businesses.

Time and cost

HR management takes time, and software can significantly reduce time spent on manual and administrative tasks such as payroll, time and attendance tracking, and benefits administration. Having a cloud-based system in place frees up time for small business owners or HR staff to focus on strategic tasks. Furthermore, it reduces administrative costs related to paperwork and long hours spent on manual processes.

Improved compliance

HR software helps keep your compliance more airtight. Since it automates most of the processes, you can rest assured that you’re keeping a record of every vital information related to compliance and audits. It also helps track deadlines for compliance-related tasks and provides reminders for legal requirements such as employee eligibility verification and OSHA reporting.

Accuracy

Because HR software keeps employee data centralized. Since it is a single platform to store and manage all employee information, it’s simple and quick to update records, manage benefits, process payroll, and optimize employee schedules. 

HR software simplifies benefits enrollment by providing a user-friendly platform for employees to select and manage their benefits, reducing the administrative workload and improving accuracy. 

It also ensures that all time and attendance records are accurate, making timesheets easier to process every pay period.

Simplified processes

HR is rife with many administrative processes, and if you do them manually, you can quickly find yourself buried in paperwork, tracking employee information, and sifting through legal rules. HR software can simplify all of that for you. 

It can help you automate and standardize onboarding, benefits enrollment and management, time and attendance tracking, payroll processing, compliance, and even some areas of performance management. 

Because HR technology streamlines much of the administrative work, you can focus on making more strategic decisions, such as improving employee benefits package, optimizing schedules according to demand, addressing workplace conflict, and taking action on employee feedback.

Employee self-service and transparency

Employee self-service is another core capability of good HR software. It lets your employees check their schedules, view their leave balances, check their benefits, and update their information. 

Employee self-service capability should begin with onboarding, where new hires can upload their information and necessary documents to your systems. As a result, you avoid double entries, minimize errors, and spend less time on admin. 

Self-service portals often allow employees to update their personal information, view pay stubs, request time off, and access the employee handbook and company policies.

Data-driven decision making

HR software equips managers with better scheduling and workforce planning. An HR software that tracks demand can quickly provide insights into how to create more profitable shifts, ensuring that you’re not over or understaffing. It can also help you determine whether to hire more people or optimize your team’s hours.

Through analytics and reporting features, you can also create strategic moves by tracking turnover rates, employee sentiment and satisfaction, and recruitment efficiency.

Workforce.com simplifies HR for small businesses

Workforce.com understands the ins and outs of running a small business, especially those employing hourly workers. Whether a small business owner or a single team member tasked with HR duties, Workforce.com can be your HR sidekick.

Workforce.com is an all-in-one platform that handles HR, scheduling, and payroll in one single platform. It encompasses all areas of the employee lifecycle, from recruitment to offboarding. Ready to meet your HR assistant? Book a demo to see Workforce.com in action. 

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How to Terminate an Employee: Essential Dos and Don’ts

Summary:

  • Employee termination is a delicate art of upholding company policies and maintaining a good relationship with employees leaving the company. When handled wrong, it can result in legal repercussions.
  • Having a policy for how to terminate employees is vital. But knowing when to do it is equally crucial.
  • Use an official Employee Termination Letter when letting someone go. Also, be sure to properly document performance records and calculate final paychecks in your HR & Payroll system.

Terminating an employee is a challenging yet sensitive process for managers and business owners. It requires a balance of empathy, professionalism, and strict adherence to legal and organizational policies. When handled correctly, it can protect the company’s reputation, maintain team morale, and uphold the dignity of the departing employee. On the other hand, mishandling employee termination can lead to legal repercussions, a toxic work environment, and damage to company culture. 

Here’s a rundown of best practices on what you must do and mistakes to avoid to ensure that your employee termination process is carried out with fairness, compassion, and respect for all parties involved. 

The Dos

Do follow company policy and legal requirements. 

Every organization should have a policy regarding employee terminations. This policy goes beyond a list of paperwork and items that employees need to return before they leave. With this in place, you would have a clear framework and set of steps to follow when letting go of an employee. 

There are several reasons why employees need to be let go, and your termination policy should clearly outline a process for when such conditions are met. Employment typically ends for the following reasons: 

  • Voluntary termination happens when employees decide to leave an organization. Once an employee turns in their resignation or notice, the turnover period usually lasts two weeks to a month, depending on what’s stated in your company policies or what you have discussed with the employee.

The steps for when an employee resigns are pretty straightforward. They will be given a list of things they need to return and informed of when they can receive their final paycheck.

  • Involuntary termination happens when the employer initiates it, and there are several reasons why employers can do so. First, companies experience changes that prompt them to downsize, let go of redundant roles, lay off employees, implement furloughs, or close the business completely. Second, employees fail to perform or commit major violations or offenses.  

Involuntary termination is more challenging to navigate because more legalities must be accounted for. For instance, is the employee given ample opportunity to improve if the termination is due to poor performance? Was the issue communicated clearly to them? You may be liable under the law if you answer no to both questions. 

Your termination policy should clearly state offboarding processes specific to the nature of the termination. More importantly, every rule should adhere to applicable labor laws to avoid non-compliance and potential lawsuits.

For instance, there are employment laws governing when final paychecks should be released. Depending on what states you operate in, you would need to release the final paycheck on the actual last day, the next scheduled payday, or a specific number of days after the termination of employment. Here’s an updated guide on severance pay and final pay rules for 2024. 

Lastly, this policy should be included in the employee handbook.

Do comply with all applicable termination laws.

The dismissal process is straightforward if an employee leaves your company on their own accord. All you need to do is determine their last working day, prepare the necessary paperwork, provide a list of things and responsibilities the departing employee needs to turn over and issue the final pay. 

However, if an employee needs to go for involuntary reasons, you must take additional steps to ensure a smooth and compliant transition. Get thorough legal counsel to ensure that you comply with all termination laws that apply to your business. In particular, ensure you are following your state’s final paycheck regulations. 

Do document everything

Prepare the necessary documentation ahead of time. While nearly every state in the US adheres to the employment-at-will doctrine, it’s good practice to have a paper trail of performance evaluations and disciplinary records that support your reasoning for terminating an employee. You should also create a termination letter, an official document to notify employees that they are being let go. It must include the reason for termination, effective date, and next steps, such as turning over company assets and releasing final pay.

Termination letters may seem straightforward, but you must be careful when writing them. As an official document, they should stand in court if needed. Ensure that they are factual and include all the necessary information. Here’s a free template and guide to writing employee termination letters.

In addition to the termination letter, it is good to prepare and refer to employment contracts and other vital data that will help the employees understand why they are being let go. If you offer a severance package, discuss what’s included and how it will be computed.

Do have a termination meeting to notify the employee privately. 

Regardless of the reason, it would be best to notify the employee privately that they are being let go. It’s never easy to receive such news, and doing it in front of others will make it even more painful. 

A face-to-face meeting keeps their dignity intact, especially if they are being let go for job performance issues. 

It is important to keep these meetings short, straightforward, and professional. During the meeting, present them with the facts, such as the reason for the employment termination, what company property they need to return, when they can expect their final pay, and other next steps. End the meeting amicably, wish them well, and thank them for contributing to the company. 

Consider recording the meeting to ensure that all your bases are covered. Be sure to inform the employee beforehand that the meeting will be recorded. 

Do have a witness when notifying employees that they are being terminated. 

Having a third party present during the meeting is another good idea, both for the employee and the manager. 

Typically, the witness is a human resources person. HR professionals are well-versed and have the expertise to handle terminations, and it can help frontline managers carry out an otherwise daunting task. 

Do provide assistance when possible. 

Depending on the termination circumstances, consider offering recommendation letters to terminated employees to help them find new employment. This can be an excellent way to end things amicably, especially for team members who are let go because of downsizing or layoffs.

The Don’ts

Don’t dismiss employees without personally talking to them. 

Firing someone is never easy and typically comes as a blow, especially for unexpected reasons like layoffs or something more sensitive like “for cause” termination. 

While a termination letter is, in principle, a tool to notify employees that they are being let go, it’s not advisable to deliver the news through this channel only. Think of it as documentation that makes everything official and prevents legal repercussions. But at the end of the day, it’s merely that—a formality. 

When letting people go, it’s best to talk to them in person before presenting formal letters and documentation. A face-to-face dialogue helps soften the blow, demonstrates respect, and allows employees to ask questions regarding the termination. 

Don’t terminate employees on a whim. 

Termination should always be the final recourse because firing an employee without due process can have legal consequences. Letting people go should never be a knee-jerk reaction to the first sign of financial challenges, unsatisfactory performance, or conflict with other staff.

If a team member is not performing up to par, consider putting them under a performance improvement plan or PIP. A PIP is a documented program to help underperforming staff members improve. If an employee falls short of the goals set under the PIP, then termination should be considered. Here’s a guide and free template for creating a performance improvement plan. 

Even if an employee violates a company policy, firing them on the first offense is often not wise. Make sure that they are given the chance to correct their behavior and provide warnings accordingly. There should also be ample investigation and facts before letting employees go due to offenses like tardiness or conflict with another co-worker.

Also read: 3 Mistakes with Employee Conflict Resolution – How to Avoid

Don’t overlook the right timing. 

When it comes to employee termination, the when is equally important as the how. 

While it seems there’s never a right time to announce that an employee is being let go, it’s still essential to time it well. In some cases, firing people at the wrong time can even result in legal risks. 

So when is it NOT advisable to terminate an employee? When they are on medical leave. While an employee who’s under FMLA leave is not exempt from termination, you need to tread carefully. Certain conditions need to be met before you can let go of an employee undergoing said leave. Make sure to consult with your legal team to handle it properly. 

Other times when it’s not advisable to fire employees include: 

  • When they are going through difficult challenges, such as getting diagnosed with a severe illness or getting divorced
  • When they are on vacation or about to celebrate their birthday
  • During December or January, when they would be dealing with the holidays and the bills that come with it
  • During Fridays, because employees may have questions or clarifications. If termination is done close to EOD or on the weekend, it’s not helpful to wait through the weekend before they can get answers or details. Doing it during the midweek is the best way to go. 

Timing is crucial because it can result in a legal issue. However, whether there is a legal risk or not, it’s best to terminate employees with as much consideration as possible. Look into how much your operations could allow and time the termination accordingly. Losing a job is the last thing anyone would want. Make it as manageable for your employees as possible. 

Don’t forget to check in with remaining staff members. 

Employee termination can also affect staff who remain with the company. Ensure you check in with current team members to see how they feel about the situation. 

It’s normal for the remaining staff to feel anxious about their employment, especially after layoffs. Schedule a time to sit with them so you can address their concerns. Use this opportunity to gauge your team’s sentiments and take quick action if you think they are likely to disengage and quit. 

After terminations, it’s best to stay transparent with the remaining team. Have an open-door policy and answer their questions honestly. 

Don’t insinuate that the decision is not final. 

Don’t give false hopes when breaking the news to employees. It has to be clear and direct that they are being let go, and nothing can alter that decision. Don’t allow room for any vagueness or misinterpretation, whether verbal or written.

Don’t part ways on a bad note. 

Terminations, for whatever reason, will never be a comfortable discussion. However, it’s always best to part ways amicably with a departing employee. Even if there’s conflict, it’s pointless to rehash the negative things that happened. At this point, it’s best to focus on the positive sides of their tenure with the organization. 

Say goodbye on a positive note, or at the very least on a professional and civil level. If you think that there’s a risk of violence, have someone nearby to assist you, and don’t engage. 

Workforce.com can help lighten the load of employee termination

There are a lot of areas concerning employee termination, and Workforce.com can help simplify them for you.

Employee termination usually requires extensive documentation of time and attendance, performance reviews, payroll details, and other information related to calculating final pay. Workforce.com can help you gather all of this data and streamline the termination process.

Discover more about how Workforce.com can help you. Book a demo today. 

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3 Mistakes with Employee Conflict Resolution – How to Avoid

Summary:

  • 85% of employees report experiencing workplace conflict.
  • Conflict at work results in personal attacks, frequent absences, and even health issues when not handled properly.
  • Conflict resolution takes up valuable time. Have processes and automation in place to handle HR admin work while dealing with workplace issues.  

Workplace conflicts are inevitable to some degree, but mishandling them can lead to more significant problems. Whether it’s personality clashes, differences in work styles, or disagreements over responsibilities, managing these conflicts effectively is crucial for maintaining a healthy company culture and productive work environment.

According to a study by CPP Inc., 85% of employees experience some kind of conflict. When managed right, conflicts can result in a better understanding and working relationship among the employees, fostering a more positive work environment. But when not handled properly, conflict can transform into bigger problems such as personal attacks, frequent absences, and, yes, even health issues. 

Unfortunately, many managers and HR professionals make common mistakes when dealing with employee disputes, often exacerbating the situation rather than resolving it. In this article, we will explore some of the most frequent pitfalls in employee conflict management and provide practical strategies for avoiding them. 

Mistake 1: Sweeping things under the rug

A study by CIPD found that approximately 31% of employees who experienced conflict felt that their concerns were not taken seriously by the person they reported to, and 48% believed that the interests of the other party were given priority over their own. 

Conflicts are typical in the workplace, but like most problems, they’re never really out of sight or out of mind. If anything, unaddressed conflicts can escalate to bigger issues, such as people leaving jobs, reduced productivity, or a full-blown outburst that can compromise safety and operations. So, the best thing is to tackle conflicts head-on. 

How to avoid: 

Unfortunately, managers and team leaders may tend to avoid conflict simply because they don’t know how to deal with it properly. The good news is conflict resolution skills can be developed. Equip your frontline managers with the right tools and training to help them navigate different communication styles and improve their problem-solving skills.

According to the same study from CPP, Inc., 60% of employees didn’t receive basic training on conflict management and resolution. The others who did, on the other hand, said that the training equipped them to manage workplace conflict and reach positive outcomes or solutions. 

Train your managers to identify different types of conflict effectively. More often than not, the root of the problem is something deeper and something that’s not always apparent on the surface. Is the issue rooted around a task, or is the problem more relational? If it’s the latter, conflict typically stems from differences in values and emotions. Emotional intelligence comes in handy in such cases. Train managers to improve or develop how they read emotions, empathize with others, and manage feelings. Active listening and knowing to use neutral language are also vital for managers and HR professionals.

Administrative tools are equally important as conflict management training, enabling managers to spend more time on the frontlines spotting issues and resolving conflict. Software like Workforce.com streamlines and automates HR processes, scheduling, timesheets, and payroll. When frontline managers finish admin tasks quickly, they get more time on the floor with staff, leading to better conflict management. 

Aside from the functionality mentioned above, Workforce.com also has a shift feedback feature that allows employees to rate their shifts. They can also say what was effective and what needs improvement. Using this information, managers and supervisors can help spot potential conflict or have a clearer perspective of what’s causing tension or challenges.

Webinar: How to Design a Retention Strategy for Hourly Staff

Mistake 2: Not communicating the outcome of the investigation

It’s great when employees are given the chance and platform to air their grievances, but that’s just the start. Employers often miss the other important part of conflict management, which is letting all parties involved know the outcome of the investigation and what next steps to take. 

Some team leaders may treat post-conflict procedures as an out-of-sight, out-of-mind matter—this definitely won’t work. Just because time has passed after the initial conflict doesn’t mean that everything should go back to normal. If anything, leaving team members hanging would further fester ill feelings, cause disengagement among staff, and even increase attrition. 

How to avoid:

Establish a process for conflict resolution and stick with it. Designating clear ground rules sets the tone and direction. The clearer the steps, the higher the chances of issues being resolved. It’s also easier to track the case’s progress and determine roadblocks to conflict resolution.

Every organization’s conflict resolution process differs, but here’s a brief framework to help you create yours. 

  • Determine the source of conflict – Gather information. You can begin by getting statements from all involved parties but don’t take anything at face value. Ask the right questions to probe further and determine the root cause of the issue. Watch out for possible indicators to better understand the reason. For instance, is the issue really about a co-worker, or could it be because of another underlying issue rooted in your operations? In addition, you can look at supporting data from your systems if needed, such as performance evaluation or time and attendance data.
  • Define possible solutions – Ask the people involved how they would want to see the issue resolved. Doing so will give you insight into their point of view and what they value most, and that’s key to coming up with the best possible solution that everyone can agree on.
  • Communicate the solution – Once you develop a solution, communicate it — whatever it is. Make sure to explain how the resolution benefits all parties involved and the organization as a whole. The key here is not always to create a perfect situation for everyone but a space where both sides can move forward, agree, and collaborate.
  • Document the process and agreement – Make sure to document the agreement and ask them for steps they would take to avoid the same issue or conflict moving forward. Note that preventive measures ideally must come from all parties involved, including the organization, if need be. If it would result in change in company policies, ensure that it is appropriately communicated to everyone else and reflected in your employee handbook. 

When conflicts arise, staff must see accountability from the parties involved. It’s not about revenge or getting back at the other but about being heard and seeing the company’s rules correctly implemented. 

Furthermore, seeing conflicts resolved and given the proper attention would encourage staff to speak up and provide feedback. Having that culture would be beneficial in terms of improving your operations and employee engagement. 

Mistake 3: Having a reactive approach to managing conflict

In an ideal world, there would be no conflict in the workplace. But we’re not in an ideal world. Conflict will always eventually arise. However, most organizations tend to fall into the trap of taking a reactive approach to conflict or not taking an approach at all. And this is where things can get messy. 

Typically, most organizations’ policies tend to be reactive, which means they only take action once conflict presents itself. While conflict cannot be completely avoided because people are…well… people, having a more active approach to dealing with issues is still key. 

How to avoid: 

Create a work environment that’s less prone to conflict. What does that look like exactly? 

First, you must equip your organization with tools that allow work to be clear. Sure, the job may have nuances, but it’s best to have a system for clearly black-and-white areas. Take, for instance, software like Workforce.com. It helps reduce or avoid disputes around time and attendance, scheduling, PTOs, and payroll because it’s automated. Should there be any concerns, they are easy to clarify or correct since there is only one source of data. 

Furthermore, you need to create a feedback system that helps spot conflicts and prevent them from blowing up. Aside from regularly scheduled check-ins and performance reviews, it also helps to incorporate a more spontaneous feedback process. Workforce.com’s shift rating and feedback can help. Asking people to rate their shifts can be crucial to identifying conflict early on. 

For instance, if consistent feedback or comments about how a certain piece of equipment delays closing time occurs, you can address it before it causes any further tension among staff. Another example would be if you’re getting reports about staff not endorsing properly for the next shift; you can also address it more ahead of time. 

Typically, conflict starts with small things or minor grievances. By creating a working environment where you can identify those triggers, you can manage conflict before it becomes big enough to disrupt your operations. 

Also read: 10 Best Practices for Employee Surveys

Tips to improve your conflict resolution strategy:

Have an open-door policy

Conflict needs to be brought to light before it can be solved. But how would that happen if employees don’t feel safe speaking up?

Staff may refuse to talk about conflict or concerns bothering them because they fear retaliation. In some instances, they don’t know where to begin. Having an open-door policy promotes open communication and a safe space for your employees to come up and talk to you if they’re facing any issues. 

When you implement such a system, ensure staff are aware of it. Reiterate that they can access their superiors if they need to raise concerns. Ensure, as well, that whatever’s discussed will be confidential or only be disclosed to others to the extent necessary to resolve issues. 

Practice active listening

In conflict management, facilitators must know how to listen, not just to respond but to understand. 

Active listening is vital to gathering information for conflict resolution. It takes into account everything being communicated, including nonverbal cues. When you listen actively, you become more conscious not just of the facts being stated but also of the person’s tone and emotions. 

Furthermore, it also pays to ask questions to validate information and recap what was discussed. 

Understand different conflict management styles

People tend to approach conflict in different ways. Here’s a general overview of these styles and why people resort to them. 

  1. Accommodating – This approach means setting aside one’s needs to give way to the other party’s needs and concerns. People tend to lean toward this approach when they want to keep the peace or if they realize they’re at fault and just want to move forward.
  2. Avoiding – As the word suggests, it means to steer clear of conflict. Some people approach conflict this way when they think the issue is trivial or not worth fighting over. Meanwhile, others avoid facing the problem because they need more time or space to think about it.
  3. Compromising – This approach aims to reach a common ground between two conflicting parties. Note that this approach aims to reach a solution that both parties can be okay with but not necessarily fully satisfied with. While it is not the most ideal, reaching a compromise can cause things to move forward, especially when there’s a deadline.
  4. Collaborating – Unlike compromising, collaborating is about reaching a win-win situation for both parties. This approach aims to reach a resolution that both parties can be happy with.
  5. Competing – Unlike accommodating, competing means standing one’s ground and not budging until the issue is resolved how they see fit. This approach is common among people who think that a rule or law was violated or if they believe that they are in the right. 

Understanding conflict resolution approaches is not just about finding the best way to tackle issues as a manager. It’s also a way to gain deeper insight into why employees approach a situation differently. For instance, if you learned of an issue concerning an employee, yet they chose not to report to you, you would want to probe if it’s just a non-issue for them or if they fear resentment.  

Use a system that keeps employee and workforce data accurate

Conflict can stem from workplace disputes around time and attendance, schedules, payroll, PTOs, and other employee information. That’s why it’s best to use a system that records all of this information, giving you a paper trail to refer back on.  

Information and data from a single source can help thwart conflicts or clarify things more easily. 

Don’t fall behind while resolving conflict 

Conflict resolution is a stressful and time-consuming responsibility for HR practitioners, especially in smaller companies. Resolving issues eats up valuable time, which is often spent on administrative tasks. To prepare for inevitable workplace conflicts, equip yourself with software that handles the admin work for you so you don’t fall behind. 

Discover how Workforce.com can streamline PTO requests, payroll processing, timesheet approvals, applicant tracking, and more so that you can handle strategic HR better. 

Schedule a demo today. 

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Work Opportunity Tax Credit (WOTC): How to claim & where to file

oil painting of blue collar workers

Summary:

  • WOTC is a federal tax credit available to organizations that hire marginalized job seekers, like disabled veterans or ex-felons, who traditionally have a difficult time finding employment. 
  • Employers typically receive a maximum tax credit equal to 40% of up to $6,000 of wages paid to a qualified WOTC employee in their first year of employment. WOTC cannot be claimed beyond that first year.
  • To claim WOTC, employers must fill out additional IRS and DOL forms and submit them to their State Workforce Agency
  • Many Payroll & HR Software providers handle WOTC screening and certification requests for employers, making the process of claiming tax credits much easier. 

The Work Opportunity Tax Credit (WOTC) is a federal tax credit that incentivizes employers to hire people who typically face significant barriers to employment. This program typically offers employers between $2,400 – $9,600 per new qualifying hire. According to the U.S. Department of Labor, roughly $1 billion in tax credits are handed out yearly through WOTC. 

To receive the credit, taxable organizations must complete a screening and certification process when hiring potentially eligible staff. If approved, employers then file an additional form with their annual business tax return. Non-taxable organizations can also participate in the program by receiving a credit against their payroll taxes. 

Introduced in 1996 as part of the Small Business Protection Act, the program was recently extended through Dec 31, 2025, largely due to the impact COVID-19 has had on the labor market. Currently, there is a bipartisan push in Congress to make WOTC permanent.

Benefits of the Work Opportunity Tax Credit

The intended goal of WOTC is to benefit both employers and employees alike. Incentivizing the hiring of targeted individuals through tax credits not only reduces costs for employers by decreasing their federal income tax liability, but it also makes it much easier for these individuals to get hired. WOTC also benefits non-taxable employers by allowing them to receive a credit against their share of Social Security taxes.

While the financial boon to employers is obviously a nice benefit, the main purpose of WOTC is really to help individuals who typically have a difficult time finding a job get hired. Over the years, WOTC has helped people like disabled veterans and ex-felons find jobs, re-enter the workforce, and get a fresh start. Not only is WOTC supposed to help these people get hired, but the program also encourages job retention by requiring WOTC-certified new hires to work a minimum of 120 hours before employers can receive the minimum credit. 

Who is eligible? 

The IRS specifies nine “target groups” employers can hire from to receive tax credits. These groups are:

  • Qualified veterans
  • Ex-felons
  • Designated community residents in Empowerment Zones or Rural Renewal Counties
  • Vocational rehabilitation referrals
  • Summer youth employees living in Empowerment Zones
  • Supplemental Nutrition Assistance Program (SNAP) recipients
  • Supplemental Security Income (SSI) recipients
  • Temporary Assistance for Needy Families (TANF) recipients
  • Long-term unemployment recipients designated by a local agency who have been unemployed for at least 27 consecutive weeks

For the most part, employers can only claim tax credits during the first year a person from one of these target groups is employed. The only exception is for TANF recipients, who employers may claim credit during the first two years.

How to claim in 5 steps

The process for claiming the Work Opportunity Tax Credit upon hiring a qulaiifed individual is relatively straightforward, but it does involve multiple steps and additional tax forms. For more information, visit the IRS website. But for now, here is the general timeline:

  1. Screen Applicants: you’ll want to ensure every new hire is screened for WOTC eligibility. Do this by ensuring applicants complete the IRS Form 8850 Pre-Screening Notice on or before the job offer date. You’ll submit this form and a written request to your State Workforce Agency (SWA) to see if an applicant qualifies for the tax credit. Visit the DOL website for a complete list of links to State Workforce Agencies. 
  2. Complete DOL ETA Form 9061 or 9062: The WOTC Individual Characteristics Form should be completed by the new hire as part of their onboarding. Along with this form, the new hire will typically need to provide supporting documentation or forms certifying their status as a member of a targeted group. 
  3. File Documents: Submit Form 8850 and 9061 along with all supporting documentation to your SWA within 28 days of the new hire’s start date. The SWA decides the eligibility of your new hire and can sometimes request additional information before approving your certification request.
  4. Track hours and wages: To claim the minimum tax credit, qualified new hires must work at least 120 hours in their first year of employment. Depending on how many qualified staff an employer has, accurately tracking all of this information can be tedious. To make things easier, use a Time and Attendance system to automatically record hours and wages on electronic timesheets. 
  5. Claim the tax credit: To receive the tax credits, submit IRS Form 5884 when filing your annual tax returns at the end of the year. Tax-exempt organizations will need to submit Form 5884-C. 


If an employer uses an outside consultant, such as a payroll or CPA firm, to sign and file WOTC forms on their behalf, they will also need to complete the Employer Representative Declaration form 9198. This form essentially declares a third party as a legal representative to manage WOTC certification requests.

How is it calculated?

At the end of the year, employers receive a maximum tax credit equal to 40% of up to $6,000 of wages paid to a qualified WOTC employee in their first year of employment. The employee needs to work at least 400 hours for the employer to receive the credit.

If the maximum tax credit above is met, employers typically receive $2,400 in credit per WOTC employee. However, employers may also claim credit on 25% of the first-year wages earned by a qualifying employee who works at least 120 hours.

There are several exceptions to the maximum credit amount of $2,400. Here are the WOTC target groups with different maximum credit amounts:

  • Veterans with service-connected disabilities who have been employed for more than six months – $9,600
  • Long-Term Family Assistance recipients who have received TANF benefits for at least 18 consecutive months – $9,000
  • Summer Youth program participants ages 16 and 17 and live in a designated community area – $1,200

Is WOTC truly a win-win?

The Work Opportunity Tax Credit program has obvious benefits for both employers and individuals in target groups. Over the years, the tax credit incentive has not only saved organizations thousands of dollars every year but also helped marginalized people across the country re-enter the workforce and provide for themselves.

However, there are some question marks regarding the effectiveness of the WOTC program. 

One of the proposed benefits of WOTC is to encourage retention. Unfortunately, meeting the minimum 120 hours for tax credit only equates to roughly three weeks of full-time employment. This low threshold has led to temporary employment agencies taking full advantage of WOTC, hiring cheap labor, getting a tax credit, and then quickly moving on from these workers.

But temp agencies aren’t the only problem. Large, low-wage employers with high turnover also take advantage of WOTC. Investigative journalism outlet ProPublica discovered that Walmart, Dollar General, and Amazon were some of the top recipients of the tax credit in a 2022 analysis. While these large companies are raking in the financial benefits, workers from target groups tend to fall by the wayside, working low-wage, high-stress jobs for a few weeks before getting laid off and starting the whole process over again.

This begs the question: With the government losing out on over $1 billion due to WOTC and temp agencies sometimes earning $114 million over the past ten years in credit, who is truly benefitting here? Without WOTC, what could the government spend its money on instead to help marginalized Americans? 

The outlook for WOTC is still uncertain. As of now, it is set to end after 2025. But, if it is either renewed or made permanent, perhaps a reassessment of who benefits from this program the most is in order. 

In the meantime, smaller employers would do well to make the most of this tax credit while also taking genuine steps to retain WOTC-qualified new hires for the long term. In most situations, WOTC is a win-win for employers and job seekers, and the program’s effect is most likely a net positive for the job market, even with a few bad actors tainting the program.

Claiming WOTC through Workforce.com

Properly screening new applicants for WOTC can be time-consuming and overburden your HR team. Not only does it prolong the hiring process, but it also opens the door to all kinds of mistakes if either a new hire or HR team member fills out a WOTC application form incorrectly.

If your organization wants to qualify for tax credits but doesn’t want to deal with the hassle, find a payroll system that does all of the work for you. 

Workforce.com features an easy-to-use WOTC screening service that allows new job applicants to check a few boxes to determine their eligibility. Using this information, Workforce.com fills out both forms 9061 and 8850 for you and sends them to your SWA for approval. Once approved, you can track all wages and hours worked through Workforce.com’s Time & Attendance system. At the end of each pay cycle, these hours are automatically reported for your organization so that you’ll receive the tax credit at the end of the year.

To learn more about claiming WOTC through Workforce.com, please reach out. We’d be happy to talk!