Small-business glossary: invoices, payroll hours and staff schedules

Plain definitions of the terms on invoices, time cards and staff rotas: payment terms like net 30, the federal overtime rules (FLSA workweek, regular rate, tip credit), California's daily overtime, rounding, breaks and the scheduling words managers use. Wage rules link the US Department of Labor, the CFR or California's Labor Commissioner. This is general information, not legal or payroll advice.

• Net 30Payment terms meaning the full invoice amount is due 30 days after the invoice date.
• 2/10 net 30 (early payment discount)Terms offering a 2% discount if the invoice is paid within 10 days; otherwise the full amount is due in 30 days.
• Quote (estimate)A priced offer sent before the work, listing what will be done and for how much, usually with a date it stays valid until.
• FLSA workweekUnder the federal Fair Labor Standards Act, a fixed and regularly recurring period of 168 hours (seven consecutive 24-hour periods) used to count overtime.
• Overtime (federal)For non-exempt employees, pay of at least one and a half times the regular rate for hours worked over 40 in a workweek.
• Regular rate of payThe hourly rate overtime is based on: all pay for the workweek's work divided by the hours worked, not just the base hourly wage.
• California daily overtimeCalifornia's rule that non-exempt employees earn 1.5× pay after 8 hours in a workday and 2× after 12, plus special rates on the seventh consecutive day of a workweek.
• Time clock roundingRecording clock-in and clock-out times to the nearest 5 minutes, tenth of an hour or quarter hour, allowed federally only if it averages out fairly over time.
• Meal and rest breaksFederally, short rest breaks (usually 20 minutes or less) are paid working time; bona fide meal periods (typically 30 minutes or more, fully relieved of duty) can be unpaid.
• Decimal hoursHours written as a decimal number for payroll (7.75) instead of hours and minutes (7:45).
• Pay periodHow often wages are paid: weekly (52 a year), biweekly (26, occasionally 27), semi-monthly (24, usually the 15th and the last day) or monthly (12).
• Tip creditUnder the FLSA, the part of the minimum wage an employer may cover with a tipped employee's tips: up to $5.12 an hour, with a cash wage of at least $2.13.
• Split shiftA workday split into two parts with a long unpaid gap between them, such as a lunch service and a dinner service.
• Clopening (rest between shifts)Scheduling the same person to close one night and open the next morning, leaving a short rest between shifts.
• Labor cost percentageLabour cost divided by sales for the same period, times 100: the share of revenue spent on staff pay.

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