Don’t offer comp time to nonexempt employees — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Don’t offer comp time to nonexempt employees

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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? —J.C., Ohio

A. In the private sector, it's unlawful to provide nonexempt employees with comp time that carries over from week-to-week. But you can have a policy that allows employees who work an extra hour one day to take off an hour (or one and a half hours or longer) on another day during the same week.

Remember: The Fair Labor Standards Act (FLSA) says that nonexempt employees must be paid overtime for all hours worked in excess of 40 hours in any given workweek. Daily overtime isn't required under the FLSA. Say an employee typically works eight hours per day for five days per week, but instead works 10 hours on Monday, six hours on Tuesday and then his normal eight-hours-per-day schedule for the rest of the week. That employee, under the law, is entitled only to 40 hours of straight-time pay (and not overtime)

Note: Check your state law; some require daily overtime and set other rules.

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