Falling back: End of daylight saving time impacts pay obligations


Issue:

This year, daylight saving time ends on October 29, 2006, when clocks will be moved back one hour at 2 a.m. How will the time change affect wage payment for employees who are working the night shift?

Answer:    

When clocks “fall back,” shift workers on duty at that time who normally work an eight-hour shift will actually work an extra hour, for a total of nine hours of work on that day. Nonexempt employees must be paid for all nine hours of work under the Fair Labor Standards Act. They are also entitled to overtime pay for all hours in excess of 40 worked during the week, including the extra hour worked during the conversion back to standard time.

Next year, the period of daylight saving time will be extended. Under the Energy Policy Act of 2005, it will begin on the second Sunday of March and end on the first Sunday of November. The Secretary of Energy will report the impact of this change to Congress. Congress retains the right to revert back to the former time schedule once the Department of Energy study is complete.

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