Ginners Partial Overtime Exemption – Review

Over the years we have discussed the partial exemption from overtime that gins are able to take advantage of. To be clear no one is obligated to use these exemptions. It is perfectly fine to pay overtime over 40 hours per week but most gins use the partial exemption to lighten the load.

There are two important code sections that allow for gins to get a bit of relief from overtime for their employees. Those code sections are 13(h) and 13(i) of the Fair Labor Standards Act. Those code sections were added in the late 1970s to help ginners deal with the large overtime burden they were beginning to see. Given it’s timing, I am guessing it was during the period when modules and larger wagons were starting to be used and gins began running 24 hours when possible…but that is just a guess.

Section 13(h) refers to jobs that are necessary and incidental to the ginning of cotton. Some examples of these jobs include truck drivers, office personnel, bookkeeper/scale clerk, repair people, watchman or security guard, and similar jobs.

Section 13(i) refers to jobs that are directly engaged in the ginning of cotton. These are the jobs in the gin doing the work that we think of when ginning. These jobs include ginner, ginners helpers, suction or module feeder hands, press hands, yard hands etc.

Both of these sections provide a 14 week partial overtime exemption. The employer may claim an exempt week for up to 14 weeks where the employees are paid overtime after 48 hours instead of 40. The difference between the two code sections is how the weeks are counted. The “Necessary and Incidental” 13(h) employees can take the 14 weeks during a calendar year. The “Directly Engaged” 13(i) employees can take the 14 weeks during a 52 consecutive week period. This difference can cause the employer to be a bit creative in how to manage these 14 weeks. If the ginning season runs long or over the end of the calendar year, you may have used up some of your weeks for the 13(h) employees for the next gin season. Also, if you have an early season following a late start season, you may not be able to start the 14 weeks right away for the 13(i) employees. Just be careful when making the determination as to when you declare a partial exempt week. One thing to keep in mind is that you don’t need to declare the week until you cut the pay checks.

The final thing to understand is that these exemptions are based on a daily or weekly overtime. The exemptions say that the employee must be paid a daily or weekly overtime based on 10 hrs per day and 48 hours per week. There are a number of examples below with the reminder that NO overtime is due (daily or weekly) if the employee doesn’t work over 40 hrs in a week. This is again a bit of management you may want to use during the beginning or end of the season or when harvest is interrupted by weather etc.

Examples of FLSA Payroll Exemption Calculations

Active Season when cotton being received for ginning (one of the 14 claimed partial overtime-exempt weeks when 11?2 times regular rate is due if either more than 10 hours worked in a workday (assuming more than 40 hours are worked in the workweek) or more than 48 hours worked in a workweek:

  1. Employee works 12 + 12 + 12 = 36 total hours; no overtime is due.
  2. Employee works 12 + 12 + 12 + 5 = 41 total hours; 6 hours of daily overtime are due.
  3. Employee works 10 + 10 + 10 + 10 + 5 = 45 total hours; no overtime is due.
  4. Employee works 12 + 12 + 12 + 12 = 48 total hours; 8 hours of daily overtime are due.
  5. Employee works 10 + 10 + 10 + 10 + 8 = 48 total hours; no overtime is due.
  6. Employee works 12+12+12+12+12+12+12=84 total hours; 36 hours of weekly overtime are due.

Dormant Season or a non-claimed partial exemption workweek when overtime is due for all hours worked in excess of 40 in a workweek:

  1. Employee works 12 + 12 + 12 = 36 total hours; no overtime is due.
  2. Employee works 12 + 12 + 12 + 5 = 41 total hours; 1 hour of overtime is due.
  3. Employee works 10 + 10 + 10 + 10 + 5 = 45 total hours; 5 hours of overtime are due.
  4. Employee works 12 + 12 + 12 + 12 = 48 total hours; 8 hours of overtime are due.
  5. Employee works 10 + 10 + 10 + 10 + 8 = 48 total hours; 8 hours of overtime are due.
  6. Employee works12+12+12+12+12+12+12=84 total hours; 44 hours of overtime are due.

All of this information can be found in a lot more detail by downloading the Ginners Practical Guide to the Fair Labor Standards Act and Migrant and Seasonal Worker Protection Act.

Don’t hesitate to call us if you have any additional questions.

DSF