By Chris Hadden, CPP
Technical Sales Manager
Leap Day is upon us!
Not only does this mean that Happy Birthday is in order to all ‘leaplings,’ but this also brings potential challenges and questions to businesses and their employees.
Do you have any salaried employees? Odds are the answer is ‘yes’. If an employee’s annual salary is typically covering a 365 day period, in 2016 this same dollar amount is covering 366 days. Does this mean employees are working an extra day for free? Not exactly, but employees could easily feel this way. TODAY.com addressed this back in 2012.
With this additional day in 2016, it could also impact employers who pay their employees weekly, which is 32.4% of private businesses, according to the recent BLS survey. Since a leap year has 52 weeks plus two additional days, some weekly payroll employees may be paid 53 times in 2016. The most important thing to do with all of this is be aware of the potential impact and communicate with your employees. Having an open line of communication with your employees about this will go a long way to help avoid unnecessary confusion regarding Leap Day.
What will you do with your extra 24 hours on Feb. 29? To the very few who have a birthday, we wish you a Happy Birthday. The rest of us will try to make the best of our Monday.