Connecticut Employment Law Blog Insight on Labor & Employment Developments for Connecticut Businesses

Minimum Daily Earnings Guarantee (or Reporting Time) Already a Rule For Some Employers

Posted in Highlight, Human Resources (HR) Compliance, Laws and Regulations, Manager & HR Pro’s Resource Center, Wage & Hour

Pizza workers may be covered.

This week, one of Connecticut’s own, Representative Rosa DeLauro introduced the “Schedules That Work Act” bill in Congress.  It would ostensibly help part-time workers secure stable schedules.

It would, among other things “ensure employees get two weeks notice about their work schedules, as well as extra pay to compensate for last minute changes”, as summed up by The New York Times.

I’m not going to spend time detailing all the nuances of the bill because, well, it has virtually no chance at all of getting passed in the gridlock that is Washington, D.C.  (If you want further details, the National Women’s Law Center has a good one here.)

One of the bill’s proposals, however, would establish a “reporting time pay requirement” which would entitle certain restaurant and retail workers to a minimum of four hours of pay even if the employer wanted to send them home early during a shift.

But what’s been missing in the discussion so far in the discussion is that Connecticut has long since had rules in place in the restaurant and mercantile industries that mandate something similar.  I first covered these rules back in 2011.

The problem for employers is that you won’t find those rules in the law itself.  Instead, you will find them in certain “wage orders” issued by the Connecticut Department of Labor. Thankfully, those orders are now available online.  (The mercantile trade order is here and the restaurant order is here.)

Both orders were updated in the last few months to take into account the minimum wage increases too.

(Speaking of minimum wage for a moment, did you check out Funny or Die’s Mary Poppins “quitting” because of her pay? Very well done.)

For restaurant workers, a two hour minimum rule (in 31-62-E1 (b)) applies, unless notice is given the day before and applies to the minimum rate, not the regular work rate.

An employee regularly reporting for work, unless given adequate notice the day before to the contrary, or any employee called for work in any day shall be assured a minimum of two hours’ earnings at not less than the minimum rate if the employee is able and willing to work for that length of time. If the employee is either unwilling or unable to work the number of hours necessary to insure the two-hour guarantee, a statement signed by the employee in support of this situation must be on file as a part of the employer’s records.

For mercantile workers, a four hour minimum rule (in 31-62-D2 (d)) applies, and its phrased slightly differently. Those employees get their “regular rate”.

An employee, who by request or permission of the employer, reports for duty on any day whether or not assigned to actual work shall be compensated for a minimum of four hours earnings at his regular rate. In instances of regularly scheduled employment of less than four hours as mutually agreed in writing between employer and employee, and approved by the Labor Department, this provision may be waived provided the minimum daily pay in every instance shall be at least twice the applicable minimum hourly rate.

What’s the practical application of this rule? Suppose you’re a retail store and have an employee who’s shift that day is from 1 p.m. to 9 p.m.  At 3 p.m., you realize that you have more than enough workers to cover the shift and send the employee home “early”.  Under Connecticut’s rule, that employee is entitled to a minimum of four hours of pay, even though they only “worked” for two.

And one more thing: For restaurant workers, the order also provides that on the 7th consecutive day at work , the employee is entitled to pay at time and a half.

So, ignore the headlines for the time being. Instead, use this summer to catch up on the rules that you may not have known about.