How to Calculate Employees Hour of Service

For every hour an employee is paid, or entitled to payment, for the performance of duties is called an “Hour of Service.” Hours of Service also include hours an employee is entitled to payment for periods of time when they didn’t work, like vacation, holidays, illness or leaves of absence.

Any hour of service an employee accrues must be applied toward their hourly calculation under the Look Back or Monthly method. Unpaid hours, except those related to unpaid FMLA, military leave or jury duty, do not count toward an employee’s average.