Run: Wage and Hour Policy for Non-Exempt Workforce

This policy establishes rules for accurate timekeeping, overtime approval and payment, meal and rest breaks, rounding, and reporting of all compensable work time for non-exempt employees. The company will comply with the Fair Labor Standards Act (FLSA), 29 U.S.C. § 201 et seq., 29 C.F.R. Part 785, and all applicable state and local wage and hour laws.

This policy applies to all non-exempt employees, including temporary, seasonal, and part-time employees, and to managers, supervisors, payroll personnel, and HR staff responsible for scheduling, approving time, or processing wages. Where state or local law provides greater employee protections, the more protective rule will apply. California employees: meal and rest break, daily overtime, and recordkeeping requirements must comply with the California Labor Code and applicable Industrial Welfare Commission wage orders. Illinois employees: scheduling and rest requirements must also be reviewed for any applicable One Day Rest in Seven Act obligations. Washington employees: paid sick leave obligations are governed separately under state law.

Key terms used in this policy are defined in the Definitions section above. For purposes of this policy, "hours worked" includes all time an employee is required or permitted to work, even if the work was not pre-approved, unless the company is prohibited by law from refusing to pay for the time worked.

Non-exempt employees must be paid for all hours worked and may not perform off-the-clock work. Managers may not discourage employees from recording all time worked, including pre-shift setup, post-shift cleanup, responding to work messages, training time, travel time that is compensable, or work performed during meal periods. Employees are responsible for accurately recording all time worked and for taking meal and rest breaks as required by law and company procedure.

1. **Timekeeping**: Employees must clock in and out using the company-approved timekeeping system for each shift, meal period, and any other required time entry. Employees must record actual start and end times and may not work on behalf of another employee or allow another employee to record time for them. 2. **Missed punches and corrections**: Employees must report missed punches, incorrect entries, or system issues to their supervisor or payroll as soon as possible, and no later than the end of the next scheduled workday unless prevented by circumstances beyond their control. Corrections must be documented and approved by the appropriate manager or payroll representative. 3. **Overtime approval**: Overtime must be approved in advance by a manager whenever practicable. However, all overtime hours worked must be paid, whether or not they were pre-approved. Working unauthorized overtime may result in documented warning or other discipline, up to and including termination, but wages for all hours worked will still be paid. 4. **Meal periods**: Unpaid meal periods must be at least 30 minutes and uninterrupted when required by applicable law. Employees must be fully relieved of all duties during unpaid meal periods. If an employee performs any work during a meal period, the time may be compensable and the break may need to be paid or reclassified under applicable law. 5. **Rest breaks**: Paid rest breaks will be provided in accordance with applicable law and scheduling needs. Employees must remain relieved of duty during rest breaks and should not perform work-related tasks unless specifically directed by management. 6. **Rounding**: The company may use a neutral rounding practice that does not consistently favor the company or the employee. Rounding will not be used to reduce recorded time in a way that results in underpayment of wages or overtime. 7. **Off-the-clock work**: Employees may not work before clocking in, after clocking out, or during unpaid meal periods unless the time is recorded and paid. Managers must not request, encourage, or permit off-the-clock work. 8. **Reporting concerns**: Employees must promptly report any missed pay, break violations, off-the-clock work, or timekeeping errors to HR, Payroll, or their supervisor. The company will investigate good-faith reports and correct any confirmed wage errors promptly.

**Employees**: Accurately record all hours worked, take required breaks, and report timekeeping errors or unpaid work immediately. **Managers/Supervisors**: Ensure schedules and workloads allow employees to comply with break and timekeeping rules, review time records for accuracy, and never alter time records without employee review and proper authorization. **Payroll/HR**: Maintain accurate wage records, process approved corrections, ensure overtime is paid correctly, and retain records in accordance with applicable law. **Policy holder**: The HR Director or designated Compliance Officer is responsible for maintaining this policy, coordinating updates, and ensuring jurisdiction-specific requirements are reflected in the current version.

Failure to comply with this policy may result in documented warning, coaching, a performance improvement plan (PIP), or other discipline up to and including termination, depending on the severity and frequency of the violation. No employee will be disciplined for reporting in good faith a wage concern, missed break, or potential violation of law. The company will not retaliate against employees for engaging in protected concerted activity under Section 7 of the National Labor Relations Act, requesting a reasonable accommodation under the ADA, taking protected leave under the FMLA, or reporting concerns to a government agency where protected by law.

This policy will be reviewed at least annually and whenever there is a material change in federal, state, or local wage and hour law, payroll systems, or business operations. Revisions must be approved by HR, Payroll, and Legal/Compliance before publication. California employees: any updates affecting meal/rest breaks, overtime, or timekeeping must be checked against California Labor Code requirements and applicable wage orders before implementation.