Can we offer comp time instead of overtime pay for nonexempt employees who work OT? — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Can we offer comp time instead of overtime pay for nonexempt employees who work OT?

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in Leaders & Managers,Management Training

Q. Can we offer our nonexempt employees comp time instead of overtime pay during a pay period? If we can, do we have to offer it at one and a half times, just like overtime is paid? For example, if an employee works one hour of overtime, do we have to give him one and a half hours of comp time?

A. You shouldn’t offer comp time to nonexempt employees if you are a private (nongovernmental) employer.

For nongovernmental employees, comp time cannot be used as a substitute for paying nonexempt employees overtime for hours worked over 40 in a week.

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