On August 8, 2017, the Governor signed House Bill 3458 and resolved the question of how manufacturing employers are required to pay overtime to employees who work both daily and weekly overtime. Pursuant to HB 3458, manufacturing employers are required to pay the greater of the amount of daily or weekly overtime accrued each week (and not required to pay both). HB 3458 has a number of provisions worth noting:
- A workweek” means a fixed period of time established by an employer that reflects a regularly recurring period of 168 hours or seven consecutive 24-hour periods.
- A manufacturing employer may not require an employee to work more than 10 hours per day or 55 hours per week, except:
- Employees can consent to work up to 60 hours per week, and
- Where an employer can show an undue hardship (where a perishable product must be processed after harvest, slaughter or catch) employees can consent to work up to 84 hours per week for 4 weeks, and up to 80 hours per week during the remaining undue hardship period (potentially an additional 17 weeks per year).
- A manufacturing employer will be eligible for an undue hardship period exemption if the employer, in the ordinary course of the employer’s business, processes perishable products (any product that may spoil, deteriorate or undergo other material changes that render it unsuitable for the use for which it was produced).
- The combined total duration of the employer’s undue hardship period exemptions may not exceed 21 workweeks in a calendar year.
- BOLI will issue a form for employers to provide notice to BOLI of undue hardship period(s). The form will include, among other information, a statement that employees consent to working the requisite overtime hours.
- Daily/weekly overtime rules do not apply to employees whose principal duties are administrative.
- Employers may not discharge or discriminate against employees who refuse to consent to work more than 55 hours per week.
HB 3458 takes effect as of August 8, 2017.