Payroll 101

Auxiliary Services Corporation

• Ruby Tuesday April 25, 2012

• Bartenders and servers at New York and Florida locations of Ruby Tuesday have sued the restaurant for unpaid wages, unpaid overtime, unpaid spread-of-hours, and for requiring bartenders to make up cash shortages in the tip pool allocation between servers and food runners, hosts, and bartenders.

• • The tipped employees allege that they were forced to work off the clock and not paid for the actual

hours they worked. • The employees claim that as a result they were not paid minimum wage for the actual hours they

worked and did not receive overtime pay for hours worked over 40 per week. • The workers also claim that they did not receive spread-of-hours pay, or an extra hour’s wage for

every shift over 10 hours. • Additionally, Ruby Tuesday is accused of improperly deducting money from the tips of the

bartenders by requiring them to use their own tips to make up for any differences in the tip-out process between the servers and hosts, food runners, and bartenders.

Paying Employees

• All hourly employees that are performing any type of work must be paid. – Hourly employees may not volunteer– If they are in early or late, management

is responsible for knowing they are not performing any work

– All interns or those performing public service must be approved by HR office.

Taking work home

• No hourly employee should be taking work home

• No hourly employee should be doing work on the internet, computer, or cell phone while away from work (not on the clock)

• If they are on call, they must be paid for the time spent on the phone

• They cannot volunteer

Paying injured employees

• If an employee will miss time from work to get FIRST AID treatment of a work-related injury, you should pay them for the rest of the shift.– Paying an employee helps to not delay

needed treatment– Treatment the next day or later is not

paid. They must use EPTO.

Travel Time Hourly employees are paid for:• Travel time as a passenger or driver from normal

work location to another destination• Travel from one unit immediately to another unit is

paid time• Time they perform any work while away from home• They are NOT paid for time that is their own, even

if they are away from home• See the Assistant Exec. Director for more

information when hourly employees are traveling

Overtime

• Hourly employees receive overtime for:– Hours worked over 40 hours in a week– Union and NBU regular employees -

Hours worked over 10 in a day; includes split shifts

Paid time off

• Unpaid time off is a disciplinary incident. Managers may approve, in advance, time off without pay based on business needs.

• EPTO accruals need to be reduced for all unplanned time off.

• Remember that time off slips need to be submitted before payroll Monday.

• Submit two forms when the absence crosses two pay periods

• Paid base pay – no shift differential paid for vacation, holiday, jury duty, bereavement or EPTO time

EPTO

• 40 hours ( if the employee has them) may be used for personal emergency or family illness

• Per fiscal year• Personal Emergency may only use 2

consecutive days• No PE EPTO during recall from layoff

Holiday

• If someone is absent on the holiday, they are not eligible to be paid or accrued that holiday benefit

• Employees made a choice on RTWD as to whether they accrue or are paid for the holiday

• Base pay – no shift differential

Jury Duty

• Full and Part-time employees who are called for jury duty are paid

• No employee will be required to work more than 10 hours of combined jury duty and work

• Documentation from the courts• Base pay

Bereavement Leave

• Employees receive up to 4 days of paid leave within 10 days of the death in the family

• See handbook for definition of family• Base pay• Notify HR to send flowers

Paid time off begins

PTO Begins

Holidays Date of Hire

Vacation Probationary or waiting period

EPTO Probationary or waiting period

Bereavement Date of Hire

Jury Duty Date of Hire

Time Off Other • Contact Assistant Executive Director for

issues regarding:– Breaks for medical conditions (accommodation)– Nursing mother – Blood or bone marrow donation– Voting– Military Leave– Due to work-related accident– Medical 3 days or longer

Call-in Stipend

• Call in - when the employee is not scheduled to work and is called at home and must report

• You must notify Payroll to make the calculation

• Greater of: 4 times their base pay –Or-Time actually worked (may be overtime)

Out of title pay

• Catering/Concession students extra $.50/hour

• If a union employee works in a higher wage band position for more than 3 hours– Cook’s helper as a cook– Baker’s assistant as a baker– Food Prep Worker doing clerical

Shift Differential

• *Start a shift before 5 am – all hours until 7 am

• *A shift ends after 11 pm – all the hours in the shift

• *$.75 extra per hour

Hours

• Part-time staff is regularly schedule for less than 30

• Student may not work more than 29 hours

• International student may not work more than 20 hours

Breaks • Any break of 20 minutes or less, such

as the union contract 10 minute break are paid (travel time, eating, run to car or dorm room)

• You are not obligated to give the short breaks except to union employees.

• Student employees or temps are NOT required to have a short break

• But if you allow the break, you must pay them for it.

Meal Breaks

Meal breaks (30 minutes) unpaidMeal Breaks 45 minutes for NBU 1 pm to 6 am1 Meal break for shifts over 6 hours – 9+hours2 meal breaks for shifts 10 hours or longerCannot volunteer to skip lunchShould be scheduled in the approximate middle of the shift.May not schedule at the end of the shift and go home early

24 hour period of Rest • Employees must receive a continuous 24-hours of

non-work time each pay week (7 days)• Pay week is Monday at midnight until Sunday at

11:59 pm• 24 hours of rest could be leaving work at 2 pm on

Monday and not start work until 2 pm Tuesday.• Employee CANNOT volunteer to work 7 days

without a 24 hour period of rest

Spread of Hours

• Employees are paid an extra hour at minimum wage ($7.25) when the SPAN of their shift is 10 hours or greater

• Span is the start of the first shift of the day until the end of the last shift of the day

• Span could include split shifts or a long shift

Tipping Policy

• ASC employees do not accept tips. • It is our pleasure to serve you.• No tip jars• Anyone who wishes to thank ASC

employees for their service should write a letter for their file or make a donation to the ASC Family Fund

Time clocks• Employees must punch their own card• Employees who repeatedly do not punch

properly should receive progressive discipline

• Waiting to punch out is not appropriate.• Employees should only punch in when they

are ready to begin work.• Rounding to the tenth of the hour –

– 8 am punch will appear for swiping at 7:58 – 8:03– 8:06 am punch will appear for swiping at 8:04 – 8:09 am

Working in other units

• Each employee is assigned to a home department

• If they work in another department they must punch themselves into the new department

Department transfer keyDepartment number (0XX612,0XX613,0XX623)EnterSwipe

Payroll Mondays

• Respond to payroll as soon as possible with any corrections and delays

• Do not save time off slips to sent payroll Monday – send them as soon as possible

Accuracy

• Review of time off slips and payroll reports

• Affects paychecks • Cost to the company for correction

checks approx. $25

Manager & Supervisor Liability

• You can be personally sued for interfering with employees rights to proper payment for wages– Do not CHANGE punches for an employee except in RARE

occasions– Edit punch definitions instead (in to out, new shift to

break)– Discipline employees who punch incorrectly; do not

change the punches– Beware of adding breaks, if you do not know the employee

took them

Chao vs. Self-Pride (4th circuit 2011)

• Chao was in charge of approving payroll at Self-Pride, an assisted-living group home

• Manager personally court ordered to pay $500,000 to employees for deducting break the employees did not really take