HR Home Forums Community Can a manager hold overtime claim until the back up report is submitted?

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  • vickyp
    Keymaster
    Post count: 4922

    Hi Glen, Is it legal for a manager to hold overtime payment till the backup report for the overtime is submitted? I think the manager decided to hold the overtime payment with the purpose of getting employees to submit the sales/service report on time that relates to the overtime claim. I just want to make sure if this is in line with the regulations. Thank you in advance.

    vickyp
    Keymaster
    Post count: 4922

    On the one hand, employers are under an absolute requirement to pay all wages earned, including overtime that is to be paid, within 8 days of the end of the pay period.

    On the other, employers are required to have records of the hours employees worked. It would not seem far fetched to say that as part of the claim for overtime, employees must submit any related documentation, such as the basis for billing a client with this overtime. The best way to do this would be to modify the timesheet process so that the information needed for billing purposes appears directly on the timesheet. With this approach, employees can’t submit a claim for overtime without also submitting the information needed for billing purposes.

    The other way around this would be to have employees bank any overtime worked. This would of course have to be with their agreement, as for example, in their contract of employment on hire. Banked wages are not subject to the 8 day rule above. Employers could have a policy that says overtime won’t be credited to the bank until the related billing information has been submitted.

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