Flextime is the use of flexible schedules in which employees spend a portion of their workday on-site, and the rest from home or another location. These arrangements have become more common since the COVID-19 pandemic, but implementing them while complying with laws and regulations can be tricky.
Unfortunately, there is little legal guidance on the use of flextime schedules. Even the federal Fair Labor Standards Act, which governs minimum wage and overtime pay for most employees, does not address flexible work schedules. Alternative work arrangements are a matter of agreement between the employer and the employee.
Flextime Considerations
If you decide to extend flextime to one or more of your employees, start by drafting an official company policy that clearly explains how it works. It’s always good to document it. Take your time to ensure you don’t run afoul of wage and hour laws in the process.
Once your policy is written, it’s advisable to have legal counsel review it to ensure compliance with the law. Once approved, include the new flextime policy in your company’s employee handbook so that it is communicated to all employees who are or may become eligible for the alternative work schedule.
Benefits of Flexible Hours
Through smartphones and wireless internet, employees can now complete more work offsite, increasing productivity and expanding a business’s reach. Employees working offsite can also attend to family and personal matters, improving their work-life balance and reducing the need for leaves of absence.
Creating a virtual workplace that allows a company to offer a flextime schedule can result in several significant benefits, including:
- Saving money on workspace
- Retaining valuable employees
- Bringing on outside project teams
- Expanding visibility
- Increasing efficiency and productivity
Flextime Policy Basics
When crafting your flextime policy, consider addressing the following key issues:
- Which employees are eligible for flextime (management, sales, or others)
- What hours employees are required to work on-site
- Whether prior approval is required from management or human resources