When Is Comp Time Legal

In addition, the FLSA does not require an employer to pay overtime on: However, workers working for these small agencies are still subject to state overtime laws (see RCW 49.46.130(5) and Washington State Department of Labor and Industries Administrative Policy ES. A.8.1 Overtime, section 9(C) and are entitled to overtime pay as follows: At the heart of the RSA`s pay time and overtime legislation is the primary objective of the RSA: to ensure fair compensation for hours worked. Worryingly, 17% of employers do not pay their non-exempt employees for overtime or compensatory hours โ€“ another big no-no when overtime is hired. According to Mykkah, “It is perfectly reasonable for employers to establish policies that require employees to obtain the manager`s consent before accumulating overtime, or even to explicitly prohibit overtime.” However, he warns, “while employers may have enforceable policies that limit overtime when that overtime occurs โ€” which they will inevitably end up doing โ€” employers are still required to pay overtime to non-exempt employees.” It is important that your employees have free time. They need to spend time with their families and follow their interests. And rested employees will perform better than tired and exhausted employees. Your employees value their time, and you should appreciate it too. When employees work overtime, you may want to give them extra free time, known as comp time. But what is Comp Time, who can use it, and when is it legal and illegal? If you need more information about your state`s scheduling law or would like to report a possible violation of state law, you may contact your state agency that deals with violations of wage and schedule/labor standards listed on the state government agencies page of our website. If the employee does not meet the work obligation test or receives less than the state salary threshold, he or she is considered non-exempt and entitled to overtime. The comp time is calculated by multiplying 1.5 times the overtime worked. The state`s salary and hourly wage thresholds for computers are automatically adjusted each year on September 30 and take effect on January 1. The adjustments are based on a multiplier of the state`s minimum wage (see WAC 296-128-545 and WAC 296-128-535), which in turn is linked to the consumer price index.

For each additional hour, 1 hour of leave is granted. Non-exempt workers must be paid overtime of more than 40 hours in a given week. Under the RSA, they are entitled to half of their regular rate for overtime worked. You can`t offer comp time to all employees. You can only grant compensatory time to non-exempt workers in the public sector. You cannot grant working time to non-exempt employees of a private non-governmental company. An example of this would be when an employer requires an employee to work overtime at the standard rate of one and a half hours for each hour after the forty hours of a work week. The employee may choose to lose overtime pay in order to receive paid leave at a later date. In the United States, such agreements are generally considered legal for public sector jobs, but not for private sector jobs. Both the Federal Fair Labor Standards Act (FLSA) and the Washington State Minimum Wage Law (MWA) require that overtime be paid to “non-exempt” employees for the time they work more than 40 hours in a 7-day week. Law enforcement officers, firefighters and hospital employees may have different eligibility criteria for overtime pay, and “exempt” employees and elected or appointed officials are not entitled to overtime pay at all.

The organization may elect to make a payment for a compensatory exemption if a federal employee moves to another component within the same organization. Conversely, the Agency may allow the employee to maintain his compensatory period in the new position, subject to the rules under which it was acquired. (See A3 for information on the definition of “mandate” for this purpose.) Under certain circumstances, the state and state agencies can legally use comp time. However, the following conditions must be met: compensatory leave may be granted (not compulsory) instead of regular overtime only for employees, including employees, who are instructed to work overtime after flexible working hours. See 5 U.S.C. 6123(a)(1). Although the use of compensation time is not permitted in the private sector for non-exempt employees, the practice is legal and more common in the public sector. It is very important to classify employees as exempt or non-exempt, although it is preferable, if so, to err in favour of classifying employees as non-exempt. If an unexempt employee is wrongly found to be exempt, the employer, if sued, is liable for retroactive overtime pay that should have been paid but was not paid, plus interest. The employer may also be held liable for damages and attorneys` fees. According to a U.S.

timeuse survey conducted by the Bureau of Labor Statistics before COVID, 57% of employees were allowed to use a flexible work schedule that varies arrival and departure times or gives them the freedom to choose their working hours. According to the company`s compensatory time policy, employees work a prescribed number of hours per payment period and may be required to be present at certain times of the day. For some remote roles and situations, employees have the option to create their own employment contract, even if they work the same number of hours as a traditional schedule. A regulation on compensatory periods may be the subject of specific legal questions and disputes. Here are some examples of the most common conflicts: For more information on overtime and hours of work, see the state and federal resources below: In the event of termination of the employment relationship, the accumulated working time must be compensated; The payment rate is the average regular wage rate over the employee`s last three years of employment, or the regular rate the employee receives, whichever is greater (29 C.F.R. ยง 553.27). One of the downsides of offering comp time is that it can lead to conflicts with employees, especially over whether they are truly exempt or not. Another challenge is managing comp time expectations. Employees can expect work time if they work overtime and may invest overtime unnecessarily to get those days off. The U.S.

Department of Labor is responsible for overseeing overtime pay and compensation time issues. Penalties that may be imposed on you for breaking the law include: Here are some of the most important guidelines employers should follow to replace overtime with compensatory hours: An employer cannot require a non-exempt employee to take compensatory time instead of overtime without the employee`s consent. Even if an employee has requested compensation time, the employee can later convert the unused comp time into cash payments. Civilian employees of a law enforcement agency or fire department are not eligible for alternating hours and are subject to normal state and federal overtime rules. State overtime thresholds: New state overtime pay thresholds that exceed federal pay thresholds will be phased in until 2028. These thresholds affect workers who are considered non-exempt and therefore entitled to overtime pay, regardless of their work obligations. Practical tip: Some jurisdictions refer to exempt employees` exercise time as “exchange time” to distinguish it from overtime and compensatory time for non-exempt employees. See, for example, if your employees have a choice between working time and overtime pay, which one will they choose? Employees who decide between the two might consider: Yes. Agencies are required to make a payment for the accumulated compensatory exemption under the conditions set forth in 5 CFR 550.114 and 5 CFR 551.531. However, an agency has the discretion to make payment for accumulated leave in other circumstances.

This discretion should be exercised by issuing formal guidelines to ensure that employees are treated consistently. The RSA does not require employers to pay overtime for exempt workers. However, employers may choose to do so voluntarily. You also have the freedom to offer comp time instead. If an exempt employee leaves the workplace before taking leave, they are not legally required to pay for the unused time. Travis received his J.D. from the University of Houston Law Center in 2017 and his B.A. with honors from the University of Texas in 2014. Travis has written on many legal topics, from articles that follow every Texas Supreme Court decision to the Virtual Reality Act. In his spare time from the legal world and seeking knowledge, this 3rd degree black belt and certified instructor strives to work with various charities focused on access to entertainment and games for all.

An example of this is the state minimum wage rate, which is higher than the federal minimum wage rate. Washington state employers must pay the state`s higher minimum wage, and the state`s minimum wage amount is also the basis for determining whether an employee passes the basic wage test, one of the tests used to determine whether a worker is exempt from overtime pay. (For more information on minimum wage issues, see our Minimum Wage page.) Workers who want time off instead of being paid overtime are not totally blind when their employers want to accommodate them. You and your employer can achieve this goal by reorganizing the work schedule in the same week you work overtime. If an employee was terminated before exhausting all of their earned pay time, the remaining time must generally be converted to overtime for the employee`s last pay. If your last paycheck does not reflect the credited compensation time, it is important to contact the employer before accepting the last paycheck to determine what happened to that pay time.