Is comp time legal in lieu of overtime? — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Is comp time legal in lieu of overtime?

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Q. Can our company legally offer comp time instead of overtime? I’ve received conflicting answers.

A. Nongovernment employers cannot legally offer comp time instead of overtime, and employees cannot legally waive their right to overtime.

Employers may allow nonexempt employees to take comp time only if the total hours worked are under 40 within a week, and the employee takes the comp time within the same pay period. For example, if an employee is normally scheduled to work 35 hours per week and works two additional hours one day, she may be permitted to take two hours of comp time as long as she uses it within the same period in which she worked the additional hours.

Under the Fair Labor Standards Act, all hours worked over 40 per week must be paid at time and a half.

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