Standard Hours of Works
Contractor must have a system to ensure compliance with legally mandated hours of work; must ensure that overtime is used only when each employee is compensated according to local laws; and must ensure that each employee is informed at the time of hiring if mandatory overtime is a condition of employment. Where local limits for regular and overtime work per week are less than 60 hours, the contractor must follow those limits. Where such limits are greater than 60 hours, every hour worked above 60 hours must be voluntary as evidenced by the employee’s signature not less than once each week indicating a desire to work the additional hours.
Regular Work Hours
Contractor must comply with local regulations for regular work hours. Contractor must provide a mechanical or electronic time-keeping system for employees to record their work hours and must retain those records for a minimum of twelve months.
If overtime is mandatory, each employee must be informed of this policy at the time of hiring. Total work hours including overtime must not be required in excess of the local labor laws or 60 hours per week on a regularly scheduled basis, whichever is lower.
If local labor laws allow the contractor to apply for special permission for employees to work additional hours beyond those regularly permitted, the contractor must obtain the permit and post it in the workplace.
Auto limit for hours of work is no more than 60 hours per week on a regularly scheduled basis, which means no more than 25% of any 12-week period, and due to extraordinary circumstances*.
Under extraordinary circumstances*, when hours of work exceed 60 per week, the contractor must obtain each employee’s signature on a weekly basis, stating that he or she understands the difference between mandatory and voluntary overtime and that he or she voluntarily chooses to work more than 60 hours in that particular week.
Extraordinary circumstances are defined as situations that are outside the control of the contractor (i.e., power is shut off by city, contractor has a flood or some other disaster, etc.) and do not include situations where the contractor must work to complete orders that exceeded their 60 hour/week capacity or capacity which meets lower overtime limits as mandated by local law.
Every employee should receive at least one day off in seven on a regularly scheduled basis, which is defined as at least 75% of the weeks in any 12-week period. Whenever possible the day off should be scheduled on the same day of the week so that the employee can plan for that day of rest. If the day of rest is changed with less than one day’s (24 hours) prior notice that day should be paid as a regular rest day, if in accordance with local labor law. Under extraordinary circumstances, when the regular day off is worked, contractors must obtain each employee’s signature stating that he or she understands the difference between mandatory and voluntary overtime and that he or she voluntarily chooses to work this time.
Where exemptions to the local overtime regulations are needed and where it is legal to do so, a contractor may apply for such allowances with prior written approval from the Nike Compliance Manager. Once Nike approval is granted, contractor must complete the following steps:
Receive written, official approval from local labor authority
Have a system in place to ensure additional overtime work is voluntary
Obtain each employee’s signature, on a weekly basis, stating that he or she understands the difference between mandatory and voluntary overtime
Maintain a copy of Auto written approval on file
All overtime must be paid in accordance with local labor laws. (See Nike Standard on Wage.)
All time keeping records, time cards and other accounting documents must be retained on the contractor premises for a minimum of twelve months.