Q&A

Can non-exempt employees receive comp time?

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Can non-exempt employees receive comp time?

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 …

Is compensatory time required?

There is no legal requirement or obligation of [Company Name] to grant compensatory time off to exempt employees. A supervisor may choose to grant compensatory time off to exempt employees who are required to work in excess of 40 hours per week for special projects or during weekends or any normally scheduled time off.

Can an employer offer compensatory time to exempt employees?

Compensatory Time Under the FLSA for Public Employers Section 207(o) of the FLSA allows public employers at the federal, state, or local level to compensate non-exempt employees for hours worked in excess of 40 with comp time in lieu of cash overtime.

Can a private sector employer offer non exempt employees comp time?

However, unlike public sector employers, private sector employers cannot offer comp time to non-exempt employees. Private sector non-exempt employees must be paid for all overtime hours.

Can a non exempt employee forfeit comp time?

Remember that comp time is simply a substitute for cash overtime. You cannot force a non-exempt employee to forfeit or convert cash overtime into something else, and you similarly cannot force a non-exempt employee to forfeit comp time or to convert it to sick time, vacation time, or other PTO.

What’s the difference between exempt and non exempt employees?

While non-exempt employees must only be paid for hours worked, exempt employees must receive their salaries regardless of time clocked. Without clear policies around PTO for these two groups, employers risk legal liability for non-compliance with federal law.

Compensatory Time Under the FLSA for Public Employers Section 207(o) of the FLSA allows public employers at the federal, state, or local level to compensate non-exempt employees for hours worked in excess of 40 with comp time in lieu of cash overtime.

However, unlike public sector employers, private sector employers cannot offer comp time to non-exempt employees. Private sector non-exempt employees must be paid for all overtime hours.

Is it illegal to offer nonexempt employees comp time?

It is illegal to offer comp time to nonexempt employees in lieu of overtime pay. Nonexempt employees are most frequently covered by the regulations of the Fair Labor Standards Act (FLSA) for overtime pay and so they are ineligible for comp time.

Remember that comp time is simply a substitute for cash overtime. You cannot force a non-exempt employee to forfeit or convert cash overtime into something else, and you similarly cannot force a non-exempt employee to forfeit comp time or to convert it to sick time, vacation time, or other PTO.

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Can non exempt employees receive comp time?

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Can non exempt employees receive comp time?

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 hourly employees receive 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.

Can a non exempt employee get comp time?

Because public, non-exempt employees’ comp time is in lieu of overtime, public employers must credit that comp time at the same rate as cash overtime: no less than one and one-half hours of comp time for each hour of overtime work.

Do you get comp time every time you work overtime?

If comp time is offered regularly, employees may come to expect it every time they work overtime. It can lead to wage and hour claims and disputes over whether employees are truly exempt or non-exempt.

Can you force a non exempt employee to forfeit overtime?

You cannot force a non-exempt employee to forfeit or convert cash overtime into something else, and you similarly cannot force a non-exempt employee to forfeit comp time or to convert it to sick time, vacation time, or other PTO.

What are the new overtime rules for exempt employees?

The new rules require that exempt employees who are paid less than $684 a week be eligible for overtime. Check your pay records to be sure you are complying with this new requirement. The U.S. Department of Labor has issued new regulations for pay for exempt employees that will make more employees eligible for overtime.

When to give exempt employees comp time instead of overtime?

Many employers give exempt employees “comp time” or compensatory time off, in lieu of pay for extra time worked or travel time, For example, if an exempt employee must work a trade show over the weekend, the employer would give time off instead of paying overtime.

Is there an alternative to overtime for public employees?

Alternatives to Overtime Only public employees are eligible for time off instead of being paid overtime under federal law. This is commonly known as “comp time” or “exchange time.” This time off must be credited at the rate of at least 1.5 hours of time off for each hour of overtime worked.

Is it illegal to offer nonexempt employees comp time?

It is illegal to offer comp time to nonexempt employees in lieu of overtime pay. Nonexempt employees are most frequently covered by the regulations of the Fair Labor Standards Act (FLSA) for overtime pay and so they are ineligible for comp time.

When to use compensatory time off for overtime?

Compensatory time off may be approved in lieu of overtime pay for irregular or occasional overtime work for both FLSA exempt and nonexempt employees who are covered by the definition of “employee” at 5 U.S.C. 5541 (2).