Dealing with multiple states’ overtime requirements in your employee handbook

Q         Our company has offices in two different states with nonexempt employees in both locations. In our employee handbook, do we need to list the details and specify the overtime pay requirements for each state, or can we simply mention we will pay overtime according to each state’s regulations?

A   You should always first check applicable state laws concerning employee handbook requirements. Most states, however, don’t mandate that you have to include specific details on overtime pay requirements in their employee handbooks. Even though there might not be a law or regulation requiring you to do so, it’s always a good idea to be clear and upfront with employees about their pay. That includes details on when they are entitled to overtime (or double time if required by state law or employer policy) and the rate at which it will be paid.

While all hours worked must be counted for overtime purposes, you should be clear in your policies when certain hours won’t be counted toward overtime. For example, holidays that aren’t worked, paid time off, vacation, and sick leave aren’t hours worked and don’t need to be included when determining whether an employee is entitled to overtime pay. It’s best to make sure employees understand this by including it in your employee handbook.