Wage & Hour Training Handout

Wage & Hour Training ATLANTA NEW YORK LOS ANGELES PITTSBURGH SAN DIEGO SAN FRANCISCO One Atlantic Center 903 Hanshaw Road 555 West 5th Street 858 Kennebec Street One American Plaza One Harbor Drive Suite 2400 Ithaca, NY 14850 35th Floor Pittsburgh, PA 15217 600 West Broadway Suite 211 1201 W. Peachtree 607.257.5165 Los Angeles, CA 90013 412.521.6691 Suite 910 Sausalito, CA 94965 Street 213.618.4128 San Diego, CA 92101 415.943.9471 Atlanta, GA 30319 619.232.4261 404.766.0076

Why are Wage and Hour laws so important? California laws (state and local) are constantly changing. These ever-changing laws affect each person in the Hotel, whether you are a manager or an hourly colleague. This handout covers the important topics discussed during the Wage & Hour presentation. Scheduling Shifts Ø Scheduling 101: Treat others the way you would like to be treated – AKA the Golden Rule o Transparently communicate how you schedule: § First come, first served time off requests § Length of commitment to hotel § During what time do you accept time off requests? § Colleagues should know ASAP whether or not their time off request has been approved o Post schedule as soon as possible. Ideally, you should know your department’s schedule 2 weeks out, at least. Ø “Workweek”: Starting in May 2019 the workweek begins on Monday at 12:01 am and ends on Sunday at midnight. Before May 2019 is started on Friday at 12:01 a.m. and ended on Thursday at midnight. Ø “Day of Rest”: Colleagues are entitled to one day (or 24 hours) of rest per workweek. If a colleague works 7 days in a workweek, they must be paid 1.5 times for the first 8 hours and double time for all hours above 8. o Exception: § When that colleague’s work time does not exceed thirty (30) hours in that workweek or six hours in any one day thereof. § A colleague may voluntarily waive this day of rest so long as they are aware of the entitlement. Ø “Workday”: The workday begins at 12:01 a.m. and ends at midnight. Page 2

Ø “Split Shift Pay”: The Hotel owes a colleague 1 hour of pay for any split shift worked. o A split shift is any two distinct work periods separated by more than a one- hour break within the same workday. Ø There is no minimum amount of time required between a colleague’s shifts. Nonetheless, best practice is to schedule at least 8 to 10 hours between shifts. Ø Timekeeping: Colleagues must accurately record (and be paid for) all hours worked. o Colleagues must punch in/out at the start and each of each shift. o Colleagues must punch in/out at the start and end of each meal break. Ø Best Practices o Give colleagues as much notice as possible regarding their upcoming schedule. § If a colleague’s regularly scheduled shifts are being changed, inform them of this change as soon as possible. o Accommodate reasonable scheduling requests from colleagues when possible. On-Call Shifts Ø The Hotel may have to pay colleagues for hours worked while “on-call” or “standby”. Ø Who is “On-Call”? Whether an employer must pay a colleague for time spent “on-call” depends on whether the Hotel restricts a colleague’s ability to utilize the colleague’s free time. Unfortunately, there is no clear-cut rule that defines when a colleague is “on-call”. o Certain factors include: geographic restrictions, frequency of calls, fixed time limit, ability to trade responsibilities with other colleagues, ability to engage in personal activities à whether these are limitations on the colleague’s ability to use the time for his/her benefit. o Compare to “uncontrolled standby” (e.g., Colleague A can use the time spent on-call primarily for his/her own benefit. This is UNPAID time). Ø Best Practices o Give the colleague sufficient time to report so that the colleague is free to use the off-duty time to the colleague’s own benefit (i.e., at least 2 hours). o Do not discipline an employee for late or missed call-ins o As practicable, do not make reporting mandatory. If the colleague answers and does not wish to report to work, move on to the next colleague on call. Page 3

Reporting Time Pay Ø “Reporting Time Pay” are wages owed to a colleague who shows up for work but, due to business reasons, is not required to work the colleague’s entire scheduled shift. Ø How much is owed? The Hotel must pay the colleague for at least ½ of the hours the colleague was scheduled to work (minimum 2 hours of pay, maximum 4 hours of pay). Ø Emergency, Mandatory Meetings o If a colleague attends a meeting on a day the colleague was not scheduled to work, the employer must pay reporting time pay (minimum 2 hours of pay, maximum 4 hours of pay). Meal Breaks Ø If a non-exempt colleague works more than 5 hours per day, the colleague is entitled to a 30-minute, unpaid, off-duty meal break, unless the colleague has signed a meal waiver. Ø Colleagues must take their meal break before the end of their 5th hour of shift (in other words, prior to working 4 hours and 59 minutes). Ø Shift is less than 6 hours, with a meal break waiver: o What is a meal break waiver? If a colleague’s shift is less than 6 hours, the colleague may voluntarily waive his/her meal break. This waiver requires prior mutual consent between the Hotel and the colleague. Check with HR! o If a colleague works less than 6 hours per day AND the colleague has executed a meal break waiver, the colleague is not entitled to a meal break. Ø Shift is more than 10 hours: o If a colleague continues to work up to 10 hours, the colleague is entitled to a second 30-minute unpaid meal break. o The colleague is not entitled to a second meal break under the following circumstances: § The colleague is scheduled to work less than 12 hours per day; § The colleague has executed a meal break waiver; and, § The colleague did not waive their first meal break Page 4

Ø Meal Break Premium Pay: If a colleague’s meal break is interrupted, or if the meal break cannot be taken within the required time frame, the colleague must be paid a meal break penalty. Ø Best Practices o Do not discourage colleagues from taking meal breaks. § Any manager that discourages or impedes a colleague’s ability to take his/her meal break will be disciplined. o Do not interrupt their meal breaks à relieve colleagues of all duties. Colleagues with radios/earpieces should be asked to turn them in during their meal break. o Relinquish control over the colleague’s activities during their meal breaks à let colleagues go off premises for their meal break. o Prohibit colleagues from working during their meal breaks. o Remind colleagues to punch out at the start of their meal break and punch back in at the end of each meal break. Rest Breaks Ø Employers must allow non-exempt colleagues to take paid rest breaks if they work a shift of more than 3.5 hours. Ø Mandatory rest breaks must be offered at the rate of 10 “net” minutes for every four hours worked, or “major fraction thereof”. Ø A colleague’s 10-minute break is “net’”, which means that a colleague’s break begins when the colleague reaches an area away from the work station. If a colleague’s rest area is at a distance from the work station, the colleague must be given a rest break that is more than 10 minutes. Page 5

Ø In an 8-hour shift, rest breaks must occur before and after the colleague’s meal break. Ø Best Practices o Provide an uninterrupted break. Relieve colleagues of all their duties. o Relinquish control of how colleagues spend their time during rest breaks. o Do not discourage colleagues from taking rest breaks. Any managers that discourage or impede a colleague’s ability to take their rest break will be disciplined. o Do not combine rest breaks or “piggyback” rest breaks onto meal breaks and/or start or end of shifts. What Happens If the Rules Are Not Followed? Ø Meal & Rest Break Penalties: If a colleague is not provided with 1 (or more) lunch or rest breaks, the colleague is owed 1 hour of pay (maximum of 2 hours per day), which is known as a “break penalty”. o This additional pay must be included in the colleague’s next paycheck. Ø Exposure to Litigation – PAGA, wage and hour lawsuits, class actions, etc. Ø Best Practices o Schedule meal and rest breaks; o Ensure penalties are paid immediately, if necessary; o Instruct colleagues to notify management if he/she was unable to take a meal or rest break and explain why. § Document each missed meal or rest break in writing with HR! o Hold managers accountable for discouraging or disrupting a colleague’s ability to take his/her meal or rest break. Overtime Ø A colleague must be paid 1.5x the colleague’s “regular rate of pay” for: o All hours worked beyond 8 hours in a single workday or all hours worked beyond 40 in a workweek; and o The first 8 hours worked on the 7th consecutive work day in a single workweek. Ø A colleague must be paid 2x the colleague’s “regular rate of pay” for: o Hours worked beyond 12 in a single workday; and o Hours worked beyond 8 on the seventh consecutive day worked in a single workweek. Ø “Rate of Pay” is not always a colleague’s normal hourly amount. “Rate of pay” Page 6

includes hourly earnings, salary, commissions, production bonuses, piece work earning, values of meals and lodging, and any cash payments the employer gives to colleagues in lieu of health benefits. Ø Overtime Calculation Chart: Ø Reminder: The workweek begins on Friday at 12:01 a.m. and ends on Thursday at midnight. Ø Tips! o Remind colleagues to accurately record their time worked (e.g., punch in/out policies). o Require colleagues to notify management before they work overtime. o Prohibit off-the-clock work! § Define “off-the-clock work” to all colleagues (i.e., no checking emails at home, no performing work in the morning before logging in and no running work errands after logging out). § If you learn a colleague has worked off the clock, in violation of the policy, report the off-the-clock work to HR as a disciplinary matter. Paid Sick Leave Ø All regular, full-time colleagues accrue 48 hours, or six days, of paid sick leave (“PSL”) on January 1st of each year of their employment. Ø All regular, part-time, temporary, and on-call colleagues accrue 24 hours, or three days, of paid sick leave on January 1st of each year of their employment. Ø Rollover: Unused, accrued sick leave automatically carries over to the next year as extended medical days. A colleague’s extended medical days shall not exceed 96 hours, or twelve days. Ø Colleagues may not use their PSL until on or after their 90th day of employment. Ø PSL may be used for: o (1) medical need of the colleague or a colleague’s family member (children, parents, spouse or registered domestic partner, Page 7

grandparents, grandchildren, and siblings); or o (2) purposes related to domestic violence, sexual assault or stalking suffered by the colleague. Ø Call-Out Procedures: o If the need for PSL is reasonably foreseeable, a colleague must provide advance notice. If unforeseeable, colleagues must provide notice of the need as soon as practicable. Tipping Ø Tips are the sole property of the colleague to whom they are given. o The Hotel cannot collect or receive any gratuity left for the colleague o The Hotel cannot deduct from the colleague’s wages any fees and/or costs to the employer associated w/ a customer’s credit card. o The Hotel cannot credit the colleague’s tips against their wages to satisfy wage requirements. Ø Reminder: What is a “tip”? o Payment by a customer made free from compulsion; o Customer determines the amount; o Payment is not subject to negotiation or dictated by employer policy; o Customer determines who receives the payment. Ø Tip-Pooling may be enforced by the Hotel. o What is a “tip pool”? Colleagues who receive tips may be required, by the Hotel, to share those tips with other colleagues. o Only non-supervisory colleagues may participate. § May Participate: Bussers, waiters, hosts, dishwashers, cooks, etc… § May Not Participate: Managers, supervisors, etc... • Any “agent” of the employer is not eligible Ø Automatic Gratuities & Mandatory Service Charges o Mandatory service charges are NOT tips to the colleagues. Service charges belong to the Hotel. § Example: A 15% banquet service charge at the Hotel, belongs to the Hotel. Ø Tips are not considered in determining a colleague’s OT rate of pay. Expenses Ø Expenses o Reimburse colleagues for all money they directly spend to perform their duties or follow directions (i.e., travel and dining expenses) Page 8

o Training-related expenses must be reimbursed to colleagues. Ø Required Cell Phone Use o Employers must reimburse colleagues whom are required to use a personal cell phone to make work-related calls (even if the colleague did not incur any extra expenses by making the work calls, i.e. with an unlimited plan). Page 9

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