Daylight Savings Reminder: Payroll Calculations

October 26 2011

At 2:00 AM on Sunday, November 6 day light savings time will officially end and clocks will be set back one hour. The only effect most people see in the USA is the change we see in the daylight. However, for payroll officers and shift workers, this change can often cause a headache.

All shift workers on duty during the time change will have to work one hour more than usual. According to law, employers are required to pay employees for this extra hour. The extra hour worked must be included in calculating overtime hours for the employee for that week. To ward off complaints and questions from employees, explain this to them prior to the event so they know they will be getting paid for the extra hour.

Daylight Savings Time is not observed in Arizona (unless you are inside of the Navajo nation), Hawaii or the the territories of American Samoa, Guam, the Northern Mariana Islands, Puerto Rico, and the Virgin Islands.

To everyone who is not in payroll or working, we hope you enjoy your extra hour of sleep!