How Holidays and Paid Time Off Figure Into Retail Employee Overtime

How is it legal to log 48 hours at work in a week and not get overtime pay for those extra eight hours? If those extra hours were holiday time or sick pay, you may be surprised to learn that those hours don’t count as overtime under the law. While many retail employees share these kinds of concerns about overtime pay and paid time off, they sometimes misunderstand their rights. Here’s a quick overview of what you should know, and don’t forget that you can reach out to our legal team at any time with questions.

What Hours Are Left Out of Overtime Calculations for Retail Employees?

Under the law, employers do not have to count paid time off toward your overtime pay. This means that, when calculating your overtime for the week, your employer will not include hours paid for:

  • Holidays
  • Vacation time
  • Sick time
  • Personal time
  • Other paid time off

As a general rule of thumb, any time you are paid for hours that you are not performing work duties probably doesn’t count toward overall overtime calculation.

What Hours Count Toward Overtime Calculations?

Time worked, for overtime purposes, includes only the hours you actually spent working. If you work full time, were paid for a day you did not work, and work a make-up day later in the week, your paycheck should show 48 hours of straight time. If you actually report to work on the holiday, work a regular shift, and then work additional hours later in the week, then you should receive time-and-a-half for any hours over 40 that week. If you need help determining if you are being paid appropriately, reach out to us today.  

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