Myth 10: Employers Can Offer Employees Comp Time in Lieu of Overtime Pay
Welcome back to the newest post in the blog series: 11 Employee Overtime Myths. To help you navigate employee overtime classification, we broke one of our most popular whitepapers down into an easily digestible series. The regulatory environment of employee overtime is very complicated, and often confusing. The content from this series comes from the ComplianceHR whitepaper Overtime Myths.
Overtime Myth 10: Employers Can Offer Employees Compensatory Time in Lieu of Overtime Pay
Reality:
Compensatory time off (often called comp time by HR professionals) is paid time off that is offered instead of cash payment for working overtime hours. An employer cannot avoid the need to pay overtime by giving a worker time off comparable to the overtime they worked.
For example, a non-exempt employee works 45 hours in one week, which entitles them to overtime (cash wages) for the 5 additional hours. The employer cannot avoid the requirement to pay overtime by giving the worker 5 hours off the following week.
How can I read the rest of the 11 Employee Overtime Myths?
Sign up to receive an email alert as each employee overtime myth is published. Alternatively, you can check back in to the Resources section of our website weekly, or download the Overtime Myths whitepaper.
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Disclaimer
This blog and the associated whitepaper are should serve as a starting point for educating Human Resources and Legal professionals on certain aspects of legal obligations of employers. It is not a comprehensive resource or a complete explanation of requirements. It offers practical information concerning the subject matter and is provided with the understanding that ComplianceHR is not rendering legal or tax advice, or other professional services. The contents are for general informational purposes only. We urge you to consult your attorney concerning any particular situation and any specific legal questions you may have.
