Daylight Savings Time Change Creates Payroll Questions

Each year, in the spring and the fall, Daylight Savings Time change is a welcome event—except when you are the person responsible for staffing or entering payroll for your organization.  Below are a few tips to keep in mind for those states that observe Daylight Savings Time.

  • Communicate to all employees on the week before Daylight Saving Time begins and ends, via pay stub notices, bulletin boards, staff meetings and employee newsletters.
  • Daylight Saving Time starts with in the spring with a spring forward one hour at 2am on the first Sunday in April.
  • Daylight Saving Time ends in the fall with a fall backward one hour at 2am on the last Sunday in October.
  • When Daylight Saving Time starts and ends, the organization’s clocks are changed to the new time as close to the time change as practicable.
  • If employees are at work when Daylight Saving Time starts, that night shift is only seven hours long, and seven hours are paid for those hours worked.
  • If employees are at work when Daylight Saving Time ends, that night shift is nine hours long, and nine hours are paid for those hours worked.

Here’s a few Frequently Asked Questions about Daylight Savings Time

  • Does the Overtime provision for nonexempt employees affect the payment of overtime at the change to or from Daylight Saving Time?  The regulation and payment remain the same—1.5x the regular rate of pay for hours worked in excess of 40 hours for the work week.
  • Does the change for or from Daylight Saving Time affect the pay for salaried and nonexempt employees?  No.

Best Practices to observe for Daylight Savings Time

  • Some organizations celebrate the changing seasons at Daylight Saving Time starting and ending weekends with posters, special cafeteria food options, outings and friendly personal reminders to enjoy a weekend that is longer or shorter by one hour.
  • Supervisors individually remind employees to adjust their clocks on these two weekends.
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One Response to Daylight Savings Time Change Creates Payroll Questions

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