Can a company insist that its non-exempt employees take paid time off rather than cash for working overtime?
Generally NO. "Comp time" (compensatory time off given instead of overtime pay) is ILLEGAL under federal law. Under federal law, if you work more than 40 hours in a work week, you must be PAID for your overtime at time-and-a-half. This applies to all non-exempt employees in all states. Employers may give time off during the same week you work extra hours (e.g., work 10 on Monday, work only 6 on Tuesday), unless you work in a state where workers are entitled to overtime pay for any time worked over a certain number of hours (8 hours in California) in one given day. Comp time is permitted within a single pay period (e.g., you might be able to take time off next week if you work overtime this week), but if it's not in the same week, the comp time must be given at time-and-a-half (e.g., 1.5 hours of time off for every hour of overtime worked).
(Revierwed 9-08) |