Hours of Service - Use of Different Equivalencies Within Single Plan

[Guest Lane]

This post relates to counting hours of service.

DOL Reg 2530.200b-3©(2) provides that: "A plan may use different methods of crediting service, including equivalencies permitted under paragraphs (d), (e) and (f) of this section and the method of crediting service under the general rule set forth in §2530.200b-2(a), for different classifications of employees covered under the plan or for different purposes, provided that such classifications are reasonable and are consistently applied."

I've seen this typically applied by plans that use actual hours for hourly employees and an equivalency for exempt employees. I have not seen this applied to use multiple equivalencies for different groups of employees.

Example: A plan applies the following:

Hourly employees - actual hours

Exempt employees paid on semi-monthly basis - 95 hours per pay period equivalency

Exempt employees paid on monthly basis - 190 hours per month equivalency

Does anyone have any experience with this or comments?

Thanks

[ETA Consulting LLC]

There wouldn't be an issue. It appears as if the specific groups are identified for the specific set of equivalencies. It's also evidient that they structured the equivalency to coincide with the pay cycle for administrative ease.

Good Luck!