Compensation Glossary

# A B C D E F G H I J K L M N O P Q R S T U V W - Z

Hour of Service

For purposes of retirement plans, an hour for which an employee is directly or indirectly paid by the employer for the performance of duties. An hour of overtime is still counted as only an hour of service, even though the pay for overtime may be higher. Hours during a leave of absence or a vacation with pay are counted.

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