Banked overtime pay

[meanmachine13]

Never dealt with this before so I have some questions.

I worked 26 hours over my standard 40 hour work week. At my company, overtime gets banked rather than paid out.

I took a week off for vacation and they missed applying my banked hours to that paycheque, so I asked to have it paid out.

When I got it paid out, the amount was 26 hours * my regular wage.

I assumed that since it was overtime hours that were banked, that I would get paid 39 hours * my regular wage. So essentially it would have made up for the week I took off work. The 39 hours comes from 26 hours * 1.5 (because they were overtime hours).

If I waited 3 months, I would get paid out at 26 hours * 1.5 my wage. So I dont understand why if I get paid out in time off, that I would essentially lose that extra 0.5 hours on each hour.

So to kind of summarize the situation:
When I take time off: 1 hour banked = 1 hour off
When I get paid out at 3 months: 1 hour banked = 1.5 hours

Shouldnt it be the same thing whether I get paid out or take time off?

[Jacks]

Haven't dealt with this is a long time but I'm pretty sure if you request the hours to get paid out before the 3 month cut off it gets paid as regular hours, same as time off.

[First Lady]

This might be helpful. Page 5 I believe is what you are looking for.

http://www.employment.alberta.ca/doc...ertime-Pay.pdf

[RT14]

I know almost every company that banks overtime does so at regular time, haven't heard about getting paid out after three months at time and a half, but I assume each company might have slightly different policies there. Not sure if that helps.

[Buff]

My company banks OT at time and half. We have to use that OT up within 3 months of accruing it. My company cannot pay out OT so we MUST take time off in lieu for OT.

My company also doesn't allow you to work OT unless approved by top management. The only people to work OT is management who don't have a set amount of hours to work, or the IT guys who are on-call, and taking an after hours call is classified as OT.

[Smartcar]

Originally Posted by meanmachine13

At my company, overtime gets banked rather than paid out.

Banked O/T means paid at regular pay when you don't work a full work week (i.e. less than 44 hours). Say you worked 66 hours one week and then 34 and 30 in the following weeks. You get paid as if you worked 44 hours and 22 get banked, and the next weeks you get paid as if you worked 44 and 42, at straight time.

Paid O/T is usually 1.5x but depends on the agreement, if one exists. Most businesses go with the banked overtime so they don't have to pay 1.5x but you have to agree to it (although it was likely in the fine print on the application form).

[trumpethead]

Umm, yeah. I'm gonna need you to come in on Saturday. mmmmkay?

[Berger]

Most companies use the banked time system so they dont have to pay you overtime. Or if you dont want the banked they pay you out at straight time every cheque. The company I work for does the same thing, banked anything over 40 at straight time. They however didn't have a mandatory time frame to use the banked time. Over 9 months in the winter I accumalated over 360 hours of banked time (9 weeks) and decided to take the entire summer off. So there are some perks to the banked time system. Needless to say though my company has now installed a 4 month time frame to use banked time.

[Rathji]

I have never heard of a company both paying 1.5 and banking hours so this is probably something specific to your company.

In the future, if you want the 1.5 pay, wait the 3 months.

[SoulOfTheFlame]

Originally Posted by trumpethead

Umm, yeah. I'm gonna need you to come in on Saturday. mmmmkay?

Oh. Oh. And I almost forgot.. Gonna have to go ahead and get you to come in on Sunday too. We lost some people and we sort of have to play catchup. Mmmmkay? Thanks.

[GP_Matt]

Our company has two streams for banked overtime.
Most employees bank their overtime at time and a half up to 240 hours. ie. they have a banked balance and if they work an hour of overtime it goes into the bank at 1.5. They can have it paid out whenever they want as a lump sum or they can take time off. The purpose of it though is to smooth out their paycheck when we have slow periods. During spring breakup sometimes work slows down for a few weeks so they take time out of their bank to make sure they keep getting 40 hours a week. Once their bank hits 240 they get any additional overtime paid out on each paycheck at time and a half. There is a law about only being allowed to leave time in the bank for so long but it works so that when their bank is full new hours go in and the old hours are paid out on their check.
Ours works quite well and most people like it. They also have the option to skip banked time altogether and just get the overtime paid out on every check. Really though, the 240 hours only takes a month or two to fill up as our guys work quite a few hours. 80 a week is pretty normal which puts 60 in the bank.

We also have a stream for so called managers where everything is the same but we only get straight time for overtime.

In my industry that is pretty standard across most companies. Which is a far cry from when I started and the lowest employees didn't get overtime unless they worked more than 10 hours a day or 191 hours in a month. 19 ten hour shifts in a row would result in no overtime.

[You Need a Thneed]

Originally Posted by meanmachine13

Never dealt with this before so I have some questions.

I worked 26 hours over my standard 40 hour work week. At my company, overtime gets banked rather than paid out.

I took a week off for vacation and they missed applying my banked hours to that paycheque, so I asked to have it paid out.

When I got it paid out, the amount was 26 hours * my regular wage.

I assumed that since it was overtime hours that were banked, that I would get paid 39 hours * my regular wage. So essentially it would have made up for the week I took off work. The 39 hours comes from 26 hours * 1.5 (because they were overtime hours).

If I waited 3 months, I would get paid out at 26 hours * 1.5 my wage. So I dont understand why if I get paid out in time off, that I would essentially lose that extra 0.5 hours on each hour.

So to kind of summarize the situation:
When I take time off: 1 hour banked = 1 hour off
When I get paid out at 3 months: 1 hour banked = 1.5 hours

Shouldnt it be the same thing whether I get paid out or take time off?

You should look at the overtime agreement you signed when you were hired, that should tell you what you are eligible for.

Essentially a banked overtime agreement is an agreement that you will receive slightly less money in exchange for evened out paycheques. When I worked for a couple of months in one, I thought it was mostly a scam, but then again, I was making $7 an hour, working 65 hours a week with no coffee breaks and only a half hour lunch.

At my current company, we pay out overtime every cheque, but we have our guys sign an overtime agreement so that they only get paid overtime for hours worked after 88 in the two week time period. The idea is that the agreement saves the employees from having to work every Saturday. (4 - 10 hour days and an 8 hour day instead of 6 - 8 hour days)