FAQ: What Do You Do When You Know A Place Of Employment Is Letting Some Employees Get Comp Time?

Can I give my non exempt employees time off instead of overtime pay Why or why not?

The U.S. Department of Labor (DOL) describes compensatory time, or “comp time,” as “paid time off the job that is earned and accrued by an employee instead of immediate cash payment for working overtime hours.” Although compensatory time off for nonexempt employees is an acceptable practice in the public sector, the

Can I give employees comp time instead of overtime?

No, California employees are not required to take paid time off ( comp time ) in lieu of being paid overtime. But employees can ask the employer for comp time instead of overtime if all of the following are true: The employee works 40-hour (has full- time employment );

What is comp time and how does it work?

What is comp time, exactly? Compensatory time refers to the practice of compensating employees with paid time off (PTO) rather than overtime pay for hours worked above 40 in a workweek.

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Can an exempt employee earn comp time?

Exempt employees are not eligible to receive overtime compensation or compensatory time off.

How do companies get away with not paying overtime?

“Non-exempt” status refers to employees who are not exempt from overtime. In other words, the employer is generally required to pay a non-exempt employee time-and-one-half for any time worked over 40 hours per week. Misclassifying someone as “exempt” is a key way many companies duck out of paying overtime.

What qualifies as an exempt employee 2020?

If the worker meets all the requirements of the duties test as an exempt employee, their minimum salary can be no less than the requirement for 2020: $35,568. An employee who doesn’t meet the duties requirements and the salary minimum must be classified as nonexempt, or eligible for overtime pay.

Is it better to take overtime or comp time?

Workers are never better off under comp time than overtime —and they are typically worse off. The bill would allow private sector employers to offer comp time at time-and-a-half in lieu of overtime pay when an employee works more than 40 hours in a week.

Can hourly employees get comp time?

The Bottom Line Comp time must be avoided when you consider hourly employees who must be paid for every hour worked. Comp time is usually not provided to exempt employees who are expected to contribute a whole job worked no matter the number of hours the employee works in this pursuit.

Are banked hours legal?

The Fair Labor Standards Act, or FLSA, specifically forbids an employer from instituting a policy that allows an employee to use “ comp ” time. When overtime hours are “banked” an employee ends up being paid his or her regular hourly rate instead of the overtime rate to which he/she is entitled.

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Who qualifies for comp time?

In short, salaried employees can receive comp time if they work for the public sector, are classified as non-exempt, and work beyond 40 hours per week.

When can comp time be used?

An employee must be permitted to use comp time within a reasonable period of time of making the request to the employer. (Essentially, an employer may deny use of comp time only if it would unduly disrupt the employer’s operations). An employer must keep records of comp time accrued and used by its employees.

How is comp time paid?

Comp time, or compensatory time off, is time off you give employees for working overtime hours instead of paying time-and-a-half overtime wages. You have a nonexempt employee who works 56 hours in a workweek. Instead of paying 16 hours worth of overtime wages to the employee, you give them comp time the next week.

How does PTO work for salaried employees?

Exempt Salaried with PTO If an exempt, salaried employee has PTO as part of their benefits package, generally you can require them to use it to cover their absences. This doesn’t impact their exempt status because, though it costs some PTO hours, it won’t change their total monetary compensation.

Can comp time be used for sick leave?

A group of corrections officers filed a Fair Labor Standards Act (FLSA) lawsuit against the City of Atlanta, Georgia. The Court found that the FLSA “does not prohibit employers from forcing employees to use compensatory time.

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