Is Santa owed overtime for his Christmas time and attendance?
As one of the busiest individuals around the world on Christmas Eve, Santa Claus' holiday pay is called into question by Natalie Hrubos of Duane Morris LLP. Hrubos asks if St. Nick's surge in hours worked in the months surrounding the winter season is considered compensable as non-exempt overtime work, or if his annual salary would cover it.
The answer comes down to whether Santa Claus is considered an exempt employee or a non-exempt worker, Hrubos explains. Because his duties primarily involves creating a list of all the naughty and nice children, he might be considered exempt as an administrative worker. However, his tasks that involve overseeing toy production could fall under the executive exemption since they involve supervising other workers and making decisions about employment.
If the manual labor he performs one night a year, delivering toys to kids around the world, was more than a rare occasion, his exemption status may not stand and he would need to be paid premium rates for all of the extra time he puts in before Christmas, the source adds.
The Department of Labor's Fair Labor Standards Act (FLSA) has very strict requirements for duties that fall under exemptions. These rules can be difficult to navigate and they often vary, depending on what can be considered a position's regular duties. To ensure that employees are properly compensated for their employee attendance, businesses can outsource human resources or invest in the proper payroll processing equipment.
The answer comes down to whether Santa Claus is considered an exempt employee or a non-exempt worker, Hrubos explains. Because his duties primarily involves creating a list of all the naughty and nice children, he might be considered exempt as an administrative worker. However, his tasks that involve overseeing toy production could fall under the executive exemption since they involve supervising other workers and making decisions about employment.
If the manual labor he performs one night a year, delivering toys to kids around the world, was more than a rare occasion, his exemption status may not stand and he would need to be paid premium rates for all of the extra time he puts in before Christmas, the source adds.
The Department of Labor's Fair Labor Standards Act (FLSA) has very strict requirements for duties that fall under exemptions. These rules can be difficult to navigate and they often vary, depending on what can be considered a position's regular duties. To ensure that employees are properly compensated for their employee attendance, businesses can outsource human resources or invest in the proper payroll processing equipment.
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