During out state meetings recently, one of the topics that seemed to cause the most confusion was dealing with overtime and how to pay it. This article will attempt to refresh everyone’s memory on how that works for gins.
Cotton Gins are in a unique position of having two partial overtime exemptions that give ginners the option of paying overtime after 40 hours (normal) or over 48 hours (partial exemption). There are two code sections in the Fair Labor Standards act that discuss the partial overtime exemption for gins. Sections 13(h) and 13(i) are the code sections in the law that we refer to for overtime exemptions. Gins may use these exemptions for up to 14 weeks.
Section 13(h) is the rule dealing with jobs that are necessary and incidental to the ginning process. A list of those types off jobs are contained in the document linked at the bottom of this article. Think of these as the people that you hire that aren’t running machinery. You can choose to use the 13(h) exemption for up to 14 weeks in a calendar year.
Section 13(i) is the rule dealing with jobs that are actively engaged in the ginning of cotton. Think of these as the people turning wrenches and working on the machinery. A list of these types of jobs is also listed in the document linked at the bottom of this article. You can choose to use the 13(i) exemption for up to 14 weeks in a 52 consecutive week period.
Most places use both of these concurrently but caution needs to be used when the season runs long. It can have an effect on one or both groups of employees in the current season and can affect the next gin season as well. Remember you don’t have to use the partial exemption at all and you don’t have to decide until you are cutting your paychecks.
One thing to remember is that NO overtime is paid if the employee didn’t work 40 hours or more regardless of whether it was an exempt week. If your employees work over 40 hours in an exempt week you must pay Daily overtime(over 10 hrs per day) or weekly overtime (over 48) whichever is greater to the employee. If you choose not burn an exempt week, your employees are paid overtime over 40 hrs. (I hope that made sense)
Lets look at some examples.
Examples of FLSA Payroll Exemption Calculations
Active Season when cotton being received for ginning (one of the 14 claimed partial overtime-exempt weeks when 11?2 times regular rate is due if either more than 10 hours worked in a workday (assuming more than 40 hours are worked in the workweek) or more than 48 hours worked in a workweek:
- Employee works 12 + 12 + 12 = 36 total hours; no overtime is due.
- Employee works 12 + 12 + 12 + 5 = 41 total hours; 6 hours of daily overtime are due.
- Employee works 10 + 10 + 10 + 10 + 5 = 45 total hours; no overtime is due.
- Employee works 12 + 12 + 12 + 12 = 48 total hours; 8 hours of daily overtime are due.
- Employee works 10 + 10 + 10 + 10 + 8 = 48 total hours; no overtime is due.
- Employee works12+12+12+12+12+12+12=84 total hours; 36hours of weekly overtime are due.
Dormant Season or a non-claimed partial exemption workweek when overtime is due for all hours worked in excess of 40 in a workweek:
- Employee works 12 + 12 + 12 = 36 total hours; no overtime is due.
- Employee works 12 + 12 + 12 + 5 = 41 total hours; 1 hour of overtime is due.
- Employee works 10 + 10 + 10 + 10 + 5 = 45 total hours; 5 hours of overtime are due.
- Employee works 12 + 12 + 12 + 12 = 48 total hours; 8 hours of overtime are due.
- Employee works 10 + 10 + 10 + 10 + 8 = 48 total hours; 8 hours of overtime are due.
- Employee works12+12+12+12+12+12+12=84 total hours; 44 hours of overtime are due.
About 20 years ago, a US Department of Labor employee out of the Lubbock office started to develop a ginners guide to the Fair Labor Standards act and the Migrant and Seasonal Worker Protection Act. He finished the guide shortly after his retirement because he felt it was important for gins to have a reference to go by. In 2008 the National Cotton Ginners Association, asked that it be revised and got a well known labor attorney in Atlanta to revise it. This document is linked below. Please download this guide and read through it. It likely answers most if not all of your FLSA, and MSPA questions. If you still have questions or want to confirm what you think you have read, please don’t hesitate to give us a call.
DSF