For employees paid on an hourly basis, an employer is required to calculate actual hours of service from records of hours worked and hours for which payment is made or due.

For employees paid on a non-hourly basis (such as salaried employees), an employer may: calculate the actual hours of service using the same method as for hourly employees, or use a days-worked equivalency crediting the employee with eight hours of service for each day for which the employee would be required to be credited with at least one hour of service, or a weeks-worked equivalency whereby an employee would be credited with 40 hours of service for each week for which the employee would be required to be credited with at least one hour of service.

The proposed regulations prohibit use of these equivalencies, however, in circumstances in which their use would result in a substantial understatement of an employee’s hours of service in a manner that would cause that employee not to be treated as a full-time employee. ACA-Track collects and monitors actual hours worked from a variety of data sources, including all types of payroll and timekeeping systems.