Labor Rules by State/Province

{Franchise Note}: Franchisees will be allowed to define their own Labor Rules. Franchisors will only see their own rules.

1. Under the Labor menu, click Labor Rules, then click the State/Province tab.  {Note}: The States/Provinces that appear in this list are associated with at least one active Location with that state/province linked to it. When an active location is linked to a state/province not listed here, it will be added to this list automatically.

2. The Rules Exist column indicates states/provinces where rules have/haven't been defined.
3. To define labor rules, double-click on the row of a State/Province to edit it.
4. Enter or select an Effective Date using the calendar control to determine when the rule takes effect.

5. Enter or edit the Minimum Wage.
6. Enter or edit the Tipped Minimum Wage.
7. Check the box to Override default tipped minimum wage rates when weekly overtime is reached. When checked, the following can be defined:

• Hours <= weekly overtime – The override rate to be paid for "regular" tipped hours.
• Hours > weekly overtime – The override rate to be paid for "overtime" tipped hours.

8. If necessary, check the box to indicate that Tip credit by shift should be applied. If not checked, tip credits will be applied on a weekly basis.  {Note}: If this is enabled, the Tip Pool Amount will not be included in the calculations for Tip Credit Allowance by shift because we don't link the Tip Pool to the specific shifts. Therefore, if you wish to see the Tip Pool Amount in the Tip Credit, this setting should not be enabled.
9. To define Minimum Paid Shift and Split Shift Rules, enter the following:  (See Details)

• Minimum Paid Shift Hours – The minimum number of hours an employee must be paid for a scheduled shift, even if they are scheduled for and actually work fewer hours.
• Maximum Qualifying Wage for Minimum Paid Shifts – The highest base pay rate an employee can earn and be eligible for Minimum Paid Shift compensation.
• Maximum Elapsed Hours between Shifts – The maximum number of hours between shifts that defines a break as opposed to a split shift. If the time between shifts is greater than this, it is considered a split shift. This rule is also used to determine discreet shifts for Minimum Paid Shifts, Paid Breaks and Clopening.
• Split Shift Differential Hours – The number of extra hours an employee will be paid if eligible for Split Shift compensation.
• Split Shift Offset Base Wage – The rate used to calculate what an employee will be paid for the Split Shift premium if eligible for Split Shift compensation (normally the Minimum Wage). Click HERE for an example.
• Spread of Hours – Within a single business day, if the interval between the beginning and end of the employees’ workday exceeds the number of hours entered here, they will receive 1 additional hour of pay at the minimum wage rate that is most beneficial to the employee (City, State, Country, or Minor Law if applicable). This spread can include time punches for breaks and split shifts, since the rule is applied based on the first punch in and the last punch out, providing that neither of these is for an unpaid meal break.

10. To define Reporting Pay Rules, enter the following:  (See Details)

• Minimum Scheduled Hours – The minimum number of hours an employee must be scheduled in order to be eligible for Reporting Pay.
• Maximum % of Scheduled Shift Worked for Reporting Pay – The maximum portion of the scheduled shift that employees can work and still be eligible for Reporting Pay. If employees work more than this percentage of the scheduled hours, they are not eligible for Reporting Pay.
• Minimum Reporting Pay Hours – The minimum number of hours employees will be paid for hours not worked (to make up the difference between hours scheduled and hours worked) because they were dismissed.
• Maximum Reporting Pay Hours – The maximum number of hours employees will be paid for hours not worked (to make up the difference between hours scheduled and hours worked) because they were dismissed.
• Reporting Pay Based On – This determines which wage rate is used to calculate Reporting Pay; options include 'Regular Rate of Pay' (default) or 'Minimum Wage'.

11. To define Scheduling Restrictions, enter the following:  (See Details)

• Consecutive Hours Rest per Calendar Week – The number of hours (1-99) in a row that an employee must not be scheduled, within a single labor week.  Can be exceeded if Allow Override is checked; if not, labor schedule must be modified before saving.
• Maximum Consecutive Days Worked – The maximum number of days (1-6) in a row an employee can be scheduled to work; can span multiple labor periods.  Can be exceeded if Allow Override is checked; if not, labor schedule must be modified before saving.  Use the radio buttons to choose whether this applies In Any 7-Day Period (default) or In a Workweek.

12. To define Paid Break Logic, choose whether this applies to Total Hours Worked or Consecutive Hours Worked.  {Note}: This is applicable to adult employees only.

13. To define Sick Leave rules, enter the following:  (See Details)

• Sick Leave based on – Choose either 'Accrual' or 'Up Front' to determine how sick leave is accumulated.
• Year Based on – Choose either 'January 1st' or 'Employee Anniversary' to determine what defines the annual period.
• Accrual Rate___hours earned per ___hours worked – This determines the rate at which sick leave accrues. (Only visible if "Sick Leave based on" = 'Accrual'.)
• Maximum Hours Accrued per Year – The maximum number of hours an employee can accrue within the annual period define by the "Year Based on" setting.
• Maximum Hours Used per Year – The maximum number of hours an employee can use within the annual period.
• Maximum Hours Carried Over per Year – The maximum number of hours an employee can carry over from one annual period into the next.
• Days of Employment Required to Earn Sick Time – The minimum number of days employees must work before they can begin accruing sick time.
• Days of Employment Required to Use Sick Time – The minimum number of days employees must work before they can begin using sick time.
• Allow Negative Sick Leave Balance – If not checked, employees will not be allowed to use more than they have accrued.  In Net-Chef, when a manager saves a Supplemental Wage that would incur a negative balance, a warning message will appear. This setting will determine whether the manager can proceed or be required to edit or delete the Supplemental Wage.

Note: If you are using Paid Time Off to maintain and update Sick Leave hours, it is not related to these calculations so you should not define Sick Leave rules here.

14. To define Meal Period Rules, click this tab, click the Plus (Add) icon and enter the following:  (See Details)

1. The Number of Meal Period Premiums Allowed per Workday defaults to '1' and cannot be edited at this time.
2. The Number of Waived Breaks Allowed per Workday defaults to '1' and cannot be edited at this time.
3. Enter the number of Hours Worked > to indicate when the break is "earned."  Click HERE for an example.
4. Enter the number of Break Minutes employees earn after working the number of hours specified.
5. Enter the number of Premium Hours for which employees can be paid if the meal period is skipped.
6. Enter the number of Max. Hours to Waive to indicate the maximum number of hours for which the premium can be waived.
7. The "Index" field exists for auditing purposes and is populated when the rule is saved.
8. Click off of the row to save the entry.

15. To define Paid Break Rules, click this tab, click the Plus (Add) icon and enter the following:  (See Details)

1. The Number of Paid Break Premiums Allowed per Workday defaults to '1' and cannot be edited at this time.
2. Enter the number of Hours Worked >= to indicate when the break is "earned."   Click HERE for an example.
3. Enter the number of Major Fraction Hours to indicate the portion of the scheduled shift that an employee must work to be eligible for the break.
4. Enter the number of Minimum Daily Hours Worked >= to indicate minimum number of hours the employee must work during the day in order to be eligible for the break.
5. Enter the number of Paid Break Minutes employees earn after working the number of hours specified.
6. Enter the number of Premium Hours for which employees can be paid if the break is skipped.
7. The "Index" field exists for auditing purposes and is populated when the rule is saved.
8. Click off of the row to save the entry.

16. To define Overtime Rules:  (See Details)

1. Click on the Daily Hours, Weekly Hours, Days Worked, Consecutive Days, Consecutive Hours, Fiscal Period, or Holiday tab.
2. Click the Plus (Add) icon.
3. Enter the information required to indicate when overtime should be paid. Click HERE for the information required for each rule type.
4. The "Index" field exists for auditing purposes and is populated when the rule is saved.
5. Click off of the row to save the entry.

17. To define State Minor Laws, click this tab, click the Plus (Add) icon and enter the following:  (See Details)

1. Check the Minor Certification Required box to add New Hire Checklist items defined as being for "Minors Only" to the Employee Checklist tab in the Employee Maintenance screen in Net-Chef.
2. Age – The age up to which this Minor Law applies.
3. Hours/Week <= – The maximum number of hours a minor of the defined age can be scheduled per week.
4. Minor Labor Program – Select a program from the drop-down to create a rule specific to minors in this age range that participate in the selected program.
5. Days/Week <= – The maximum number of days a minor of the defined age can be scheduled per week.
6. Min. Wage – The lowest wage a minor of the defined age can be paid.
7. Hours/Day <=: School Day: Next Day School Day – The maximum number of hours a minor of the defined age can be scheduled on a school day when the next day is a school day.
8. Hours/Day <=: School Day: Next Day Non-School Day – The maximum number of hours a minor of the defined age can be scheduled on a school day when the next day is a non-school day.
9. Hours/Day <=: Non-School Day: Next Day School Day – The maximum number of hours a minor of the defined age can be scheduled on a non-school day when the next day is a school day.
10. Hours/Day <=: Non-School Day: Next Non-School Day – The maximum number of hours a minor of the defined age can be scheduled on a non-school day when the next day is a non-school day.
11. Out = or Before: School Day: Next Day School Day – The latest time a minor of the defined age can be scheduled on a school day when the next day is a school day.
12. Out = or Before: School Day: Next Day Non-School Day – The latest time a minor of the defined age can be scheduled on a school day when the next day is not a school day.
13. Out = or Before: Non-School Day Next Day School Day – The latest time a minor of the defined age can be scheduled on a non-school day when the next day is a school day.
14. Out = or Before: Non-School Day: Next Day Non-School Day – The latest time a minor of the defined age can be scheduled on a non-school day when the next day is not a school day.
15. In = or After: School Day – The earliest time a minor of the defined age can be scheduled on a school day.
16. In = or After: Non-School Day – The earliest time a minor of the defined age can be scheduled on a non-school day.
17. Daily Overtime: Hours Worked > – The number of schedule hours per day beyond which overtime pay is required for a minor of the defined age.
18. Daily Overtime: Multiplier – The factor by which the base rate for a minor of the defined age is multiplied to calculate daily overtime.
19. Daily Overtime: Code – Enter a 3 character code; required to ensure OT Code/Multiplier combination is unique.
20. Meal Break: Hours Worked > – For a minor of the defined age, a meal break is required for every N number of hours worked, based on the value entered.
21. Meal Break: Minutes – The length of a meal break that a minor of the defined age should be given.
22. Paid Break: Hours Worked >= – For a minor of the defined age, a paid break is required for every N number of hours worked, based on the value entered.
23. Paid Break: Minutes – The length of a paid break that a minor of the defined age should be given.
24. The "Index" field exists for auditing purposes and is populated when the rule is saved.

Note: Users can remove labor rules by clicking the [X] (Delete) icon in the "Actions" column.

18. When finished, click Save and Close.

  

 

Related Topics