COMPENSATORY TIME OFF IN LIEU OF OVERTIME FOR HOURLY WORKERS

Larry

IS IT LEGAL UNDER THE FLSA TO GIVE COMP TIME OFF IN LIEU OF OVERTIME TO NONEXEMPT HOURLY EMPLOYEES? IF IT CAN BE DONE, WHAT IS THE DEADLINE FOR USING EARNED COMP TIME?

Hatchetman

[font size="1" color="#FF0000"]LAST EDITED ON 06-18-01 AT 04:34PM (CST)[/font][p]Yes, for private sector employers it is against FLSA to give overtime as "comptime" for FLSA-nonexempt employees. The only exception is for governmental entities. They may with the employee's approval (individually or through cba) provide comptime in lieu of paid overtime at 1 and 1/2 hours for each hour of overtime or any combination (30 minutes pay and 1 hour of comptime, for example, for each hour of overtime).

However, private sector employers can "adjust" the overtime within the same pay period that it is earned by allowing the employee to take time off at 1 1/2 times the overtime. It must be taken off within the SAME PAY PERIOD the overtime is earned. This method really only works if you have a pay period of more than one week and the overtime is worked early in the pay period. So, if you pay the non-exempt employee every two weeks and the overtime is worked in the first work week, in the second work week you can allow the employee to take 1 and 1/2 hours off for each hour of overtime in the first work week in lieu of paying 1 1/2 times. You still pay the employee his or her regular earnings for the two weeks (without regard to the overtime or the time taken off as the "adjustment"). If you don't do it that way, then the overtime must be paid.

sonny

hatchet man: This answer was most helpful to me but need to take it a step or two further. For government enities, is there a time frame in which the comp time must be used? Your answer said "with the employees approval". What if the employee doesn't "approve" and cba is n/a? Finally, can you direct me to where this addressed FLSA. Thanks so much for your help

TheCol

See the comments by "Hatchetman". I wish I'd said that. As perfect an answer as you will find. Municipalities like fire departments and other non-private sector employments can allow "comp time". Not non-exempt hourly.