Right here’s a quantity: $287,923. That’s how a lot the Division of Labor recovered in again wages and liquidated damages from a enterprise that provided comp time as an alternative of extra time. So, what’s comp time, and when is it OK to present?

What’s comp time?

Comp time, comp days, or compensatory day off, is day off given to staff for working extra time hours as an alternative of paying time-and-a-half extra time wages. Extra time hours are sometimes any hours an worker works past 40 hours in a workweek.

Nonexempt staff are entitled to extra time pay beneath the Honest Labor Requirements Act (FLSA). So, is comp time authorized beneath the FLSA? To reply this, let’s take a more in-depth have a look at private-sector vs. public-sector companies.

Non-public sector

For personal-sector employers, giving comp time to nonexempt staff in lieu of extra time pay is virtually at all times unlawful.

Let’s say you’ve gotten a personal enterprise. You’ve gotten a nonexempt worker who works 56 hours in a workweek. As an alternative of paying 16 hours’ value of extra time wages to the worker, you give them comp time the subsequent week. On this case, you probably violated FLSA extra time legal guidelines. As an alternative, you must have paid the worker extra time wages for the additional 16 hours labored to stay in compliance with FLSA compensatory day off guidelines.

Nevertheless, you can provide exempt staff day off after they work additional. Exempt staff are exempt from FLSA rules, together with extra time pay.

For instance, your exempt worker usually works 40 hours per week. The worker works 50 hours this week. You possibly can permit the worker to take 10 additional hours off for the additional time labored. Remember the fact that neither extra time nor additional day off is required for exempt staff.

Public sector

In line with the Division of Labor, public-sector nonexempt staff could also be eligible for comp time beneath sure situations.

Staff of state and native authorities businesses, for instance, can obtain comp day off at a charge of no less than time-and-a-half for every extra time hour labored.

Remember the fact that there are typically limits on how a lot comp time hours public sector staff could accrue. Seek the advice of the Division of Labor’s web site for extra info.

What if staff comply with comp time?

So, what when you and your non-public, nonexempt staff comply with comp time as an alternative of extra time wages? Comp time remains to be unlawful.

In line with the Division of Labor, extra time pay for nonexempt staff can’t be waived, even when each staff and employers agree.

Comp time isn’t the one legislation the FLSA covers.

Be sure you’re on the precise aspect of the Federal Labor Requirements Act. Try our FREE information
The Busy Enterprise Proprietor’s Full FLSA Cheat Sheet, for all the pieces you have to know.

Can’t give comp time? Tips on how to calculate extra time

You should pay extra time wages to your nonexempt staff after they work extra time hours. Once more, it’s essential to pay nonexempt staff time-and-a-half for any hours labored past 40 in a workweek.

Let’s say you’ve gotten an worker whose common charge of pay is $20. For extra time wages, the hourly extra time charge is $30 ($20 X 1.5).

If that worker works 10 hours of extra time, you’d owe the worker $300 for the additional time labored ($30 X 10).

Odds are, you must pay extra time wages as an alternative of granting comp time. Use Patriot Software program’s payroll software program to calculate extra time pay in your staff simply. Try our software program without cost!

This text has been up to date from its unique publication date of Could 3, 2017.

This isn’t meant as authorized recommendation; for extra info, please click on right here.