Safe Harbor Policy Newest 1104 by ban11070

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									                                           SAMPLE
                                    SAFE HARBOR POLICY
                 (for employers with employees who work fluctuating workweeks)

It is our policy and practice to compensate employees for all time worked and to do so in
compliance with all applicable state and federal laws. To ensure that you are paid properly for
all time worked and that no improper deductions are made, you must record correctly all work
time and review your paychecks promptly to identify and to report all errors. No one who is
eligible for overtime should perform any work that is not authorized and recorded on his or her
time card. While all time worked will be paid, even if not authorized, working without
authorization is a violation of Company policy that could lead to disciplinary action.

Review Your Pay Stub

We make every effort to ensure our employees are paid correctly. Occasionally, however,
inadvertent mistakes can happen. When a mistake does happen and is called to our attention, we
promptly will make a correction. Please review your pay stub when you receive it to make sure
it is correct. If you believe a mistake has occurred (including any improper deductions, under-
reported hours of work or other error) or if you have any questions, please use the reporting
procedure outlined below.

Overtime Eligible (Non-exempt) Employees

If you are classified as a non-exempt employee (which means that you are eligible for overtime
pay), you must maintain a record of the total hours you work each day. These hours must be
accurately recorded on a time card that will be provided to you by your supervisor. Each
employee must sign and date his or her time card to verify that the reported hours worked are
complete and accurate. Time cards must accurately reflect all regular and overtime hours
worked, any absences, early or late arrivals, early or late departures and meal breaks. At the end
of each week, you should submit your completed time card to your supervisor for verification
and approval. Do not sign your time card unless it is accurate. If your time card is not accurate,
notify your supervisor immediately. When you receive each pay check, please verify
immediately that you were paid correctly for all regular and overtime hours worked each
workweek.

Non-exempt Employees Paid Under the “Fluctuating Workweek” System

All non-exempt employees paid under the “fluctuating workweek” system must sign a written
agreement regarding that arrangement. If you do not have such an agreement and you believe
you are being paid under the “fluctuating workweek” system, please contact Human Resources
Jackson Lewis is pleased to provide this sample safe harbor policy. Please note that the sample policy is not
intended to be legal advice. Any use other than for educational purposes is the sole responsibility of the user. Users
should consult legal counsel about the policy language that is appropriate for their individual workplaces.           1
or use the complaint procedure outlined at the end of this policy. As a non-exempt employee
paid under the fluctuating workweek system, you will receive a salary which is meant to cover
all hours worked. You also will receive overtime pay as outlined below.

Your salary will be established at the time of hire or when you become classified as a non-
exempt employee paid under the fluctuating workweek system. While it may be subject to
review and modification from time to time, such as during salary review times, the salary will be
a predetermined amount that will not be subject to deductions for variations in the quantity or
quality of the work you perform. For any workweek in which any work is performed, your
salary will not be reduced by partial or full day absences. You will be required to use any
accrued paid time off to “cover” an absence. If you do not have any accrued paid time off at the
time of an absence, you will receive your full salary for workweeks in which you perform any
work.

As a non-exempt employee paid under the fluctuating workweek system, you will be paid
overtime pay for all hours worked in excess of 40 hours in a workweek. Because you receive a
salary which is meant to cover all hours worked, part of your overtime pay already is included in
your base salary. The amount of overtime compensation paid will vary with the number of
overtime hours you work. For each workweek in which you work more than 40 hours, the
Company will divide your weekly salary by the total number of hours you worked. This amount
will be divided in half to determine the half-time premium in the time-and-one-half premium
pay. That number will be multiplied by the number of hours you work in excess of 40 hours per
week to determine your overtime pay. For example, if your weekly salary is $500.00 and your
worked 50 hours, you would receive your salary plus overtime pay of $50.00 (i.e., $500.00 ÷ 50
= $10.00/hour regular hourly rate x .5 (half-time rate) = $5.00/hour for each overtime hour in
that workweek).

If you are a non-exempt employee paid under the fluctuating workweek system, you must
maintain a record of the total hours you work each day. These hours must be recorded accurately
on a time card that will be provided to you by your supervisor. Each employee must sign his or
her time card to verify that the reported hours worked are complete and accurate. Your time card
must accurately reflect all regular and overtime hours worked, any absences, early or late
arrivals, early or late departures and meal breaks. At the end of each week, you should submit
your completed time card to your supervisor for verification and approval. Do not sign your
time card unless it is accurate. If your time card is not accurate, notify your supervisor
immediately. When you receive each pay check, please verify immediately that you were paid
correctly for all regular and overtime hours worked in each workweek.

Exempt Employees

If you are classified as an exempt salaried employee, you will receive a salary which is intended
to compensate you for all hours you may work for the Company. This salary initially will be
established at the time of hire or when you are classified as an exempt employee. While your
base salary may be subject to review and modification from time to time, such as during salary
review times, the salary will be a predetermined amount that will not be subject to deductions for
variations in the quantity or quality of the work you perform.



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Under federal law, your salary is subject to certain deductions. For example, absent contrary
state law requirements, your salary can be reduced for the following reasons:

      Full day absences for personal reasons, such as vacation or personal days.

      Full day absences for sickness or disability which may be reimbursed by our sick day or
       short-term illness plan.

      Full day disciplinary suspensions for major safety violations or significant infractions of
       important written workplace conduct rules.

      Family and Medical Leave absences (either full or partial day absences).

      To offset amounts received as payment for jury and witness fees or military pay.

      The first or last week of employment in the event you work less than a full week.

      Any full workweek in which you do not perform any work.


Your salary may also be reduced for certain types of deductions such as your portion of health,
dental or life insurance premiums; state, federal or local taxes, social security; or voluntary
contributions to a 401(k) or pension plan. In any workweek in which you performed any work,
your salary will not be reduced for any of the following reasons:

      Partial day absences for personal reasons, sickness, vacation or disability (unless the
       FMLA provides to the contrary).

      Your absence because the facility is closed on a scheduled work day.

      Absences for jury duty, attendance as a witness, or military leave in any week in which
       you have performed any work.

      Any other deductions prohibited by state or federal law.

It is not an improper deduction to require the use of your vacation, personal or other forms of
paid time off for full or partial day absences for personal reasons, sickness, disability or other
reasons. Pursuant to our paid time off policies, employees who are absent for all or part of a
work day must apply accrued paid time off to that missed work time. After all paid time off is
exhausted, no partial day deductions will be made from the salary of a salaried exempt employee
unless permitted by law.




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To Report Violations of This Policy, Communicate Concerns, or Obtain More Information

It is a violation of the Company's policy for any employee to falsify a time card or to alter
another employee's time card. It is also a serious violation of Company policy for any employee
or manager to instruct another employee to incorrectly or falsely report hours worked or to alter
another employee's time card to under- or over-report hours worked (or to fail to report any such
misconduct. If any manager or employee instructs you to (1) incorrectly or falsely under- or
over-report hours worked, (2) alter another employee's time records to inaccurately or falsely
report that employee's hours worked, or (3) conceal any falsification of time-records or to violate
this policy, do not do so. Instead, report it immediately to the Human Resources Department.

You should not work any hours outside of your scheduled work day unless your supervisor has
authorized the unscheduled work. Do not start work early, finish work late, work during a meal
break or perform any other extra or overtime work unless you are authorized to do so and that
time is recorded on your time card. Employees are prohibited from performing any "off-the-
clock" work. "Off-the-clock" work means work you may perform but fail to report on your time
card. Any employee who fails to report or inaccurately reports any hours worked will be subject
to disciplinary action, up to and including discharge.

If you have questions about deductions from your pay or your wages, please immediately contact
Human Resources. If you believe you have been subject to any improper deductions or your pay
does not accurately reflect your hours worked, you should immediately report the matter to your
supervisor. If the supervisor is unavailable or if you believe it would be inappropriate to contact
that person (or if you have not received a prompt and fully acceptable reply within three business
days), you should immediately contact the Vice President of Human Resources [provide names,
addresses and telephone numbers], the Manager of Payroll, or any other supervisor in the
Company with whom you feel comfortable. If you are unsure of whom to contact if you have
not received a satisfactory response within five business days after reporting the incident, please
immediately contact _______________ [provide names, addresses and telephone numbers]
or use the reporting hotline at 1-800-________.

Every report will be fully investigated and corrective action will be taken where appropriate, up
to and including discharge for any employee(s) who violates this policy. The Company will not
allow any form of retaliation against individuals who report alleged violations of this policy or
who cooperate in the Company’s investigation of such reports. Retaliation is unacceptable. Any
form of retaliation in violation of this policy will result in disciplinary action, up to and including
discharge.




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