Compensatory time, or “comp time,” is an alternative to overtime pay where employees receive paid time off instead of extra wages for overtime hours worked. But, not so fast. While this may seem like a useful tool for managing labor costs and scheduling, its legality depends on the type of business and the classification of employees. Employers must understand the rules before offering comp time to avoid legal issues. The legality of comp time depends on whether an employer operates in the public or private sector: Public-Sector Employers: Under certain prescribed conditions, employees of state and local government agencies are…
Posts tagged as “Compensatory Time”
Compensatory time, aka Comp Time, has been an acceptable practice for government employees, but a recent bill passed by the House on May 2nd moves on to the Senate. Comp time is formally defined as time off that is accrued by an employee in exchange for cash overtime pay, or more precisely as 1.5 hours of Comp time in exchange for 1 hour worked of overtime. While this may be happening in private businesses today, it is currently a violation of the Fair Labor Standards Act (FLSA), and the Working Families Flexibility Act of 2017 (H.R. 1180) is looking…