Rules for Accounting for Summer Help

Vacation and holidays. Federal and state laws do not require paying summer or part-time help for vacation or holiday pay any time of year. But if you give vacation pay, some state laws may apply.

Overtime pay: federal law. Pay overtime for all hours physically worked over 40 hours in a workweek. You are not required to include paid time off—e.g., vacation days. Do not substitute paid nonwork hours for work hours to make all hours straight time to avoid paying some hours at straight time and some at overtime.

Example: J worked 12 hours a day the first 4 days of the workweek. For the 5th day, a holiday, J did not work, but received 8 hours’ pay. Because J physically worked 48 hours, J must be paid: 40 hours’ straight time + 8 hours overtime + 8 (nonwork) hours holiday pay. J’s employer cannot offset the 8 hours’ overtime with 8 hours’ holiday pay.  Some states, such as California, require employers to pay unused vacation time if the employee terminates.

Family-owned firms employing the owners’ children.  If the parent(s) own 100% of the business as sole proprietor(s), partner(s) or stockholder(s), their children can work for them regardless of age, hours or time of day.  But if the owners regularly employ other than immediate family, they must pay their children the federal minimum wage. Their children under 16 generally may do clerical but not “hazardous” work, such as operating lawn mowers, sewing machines, etc., work where food is cooked or near flammable or hazardous material.

Children under 18 not related to the owners. Obtain an age certificate recognized or approved by the U.S. Department of Labor (DOL) and your state Wage and Hour Division. In most instances, the DOL will accept a state age certificate, but check with your state Wage and Hour Division to be sure. These individuals may not perform hazardous work. Note: Employers must return age certificates to minors upon termination.

Children aged 14-15 not related to the owners. If school is not in session (i.e., the summer), these children can work up to 8 hours a day, 40 hours a week, from June 1-Labor Day between 7 a.m.-9 p.m.

Exceptions:

• These limits do not apply to news carriers or children employed exclusively by a parent/sole proprietor.
• For agricultural jobs, contact the DOL.

Children under 14 not related to the owners cannot be hired unless they work for a parent/sole owner.