We work a 35 hour work week. Our union contract calls for comp time for all hours worked between 35 and 40. Is this legal in NJ and if not, what are the consequences?
Are the employees exempt or non-exempt? What type of business entity? I believe that there is some type of exclusion allowing comp time for non-exempt public employees in NJ but would need to look further.
Federal Laws only address hours worked over 40. Unless you are a public entity, employers are REQUIRED to PAY time and half wages and do not have the option of compensatory time, even if employees request it. On the other hand, you are talking about the hours between 35-40. If you have a union contract stating you will pay compensatory time for these five hours, then I don't see a problem. You may still want to check state laws to make sure you don't have a violation here, but I doubt it.
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