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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 a substitute of extra time. So, what’s comp time, and when is it OK to offer?
What’s comp time?
Comp time, comp days, or compensatory day without work, is day without work given to workers for working extra time hours as a substitute of paying time-and-a-half extra time wages. Time beyond regulation hours are usually any hours an worker works past 40 hours in a workweek.
Nonexempt workers are entitled to extra time pay below the Truthful Labor Requirements Act (FLSA). So, is comp time authorized below 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 workers in lieu of extra time pay is virtually all the time unlawful.
Let’s say you could have a personal enterprise. You’ve a nonexempt worker who works 56 hours in a workweek. As an alternative of paying 16 hours’ price of extra time wages to the worker, you give them comp time the following week. On this case, you possible violated FLSA extra time legal guidelines. As an alternative, it’s best to have paid the worker extra time wages for the additional 16 hours labored to stay in compliance with FLSA compensatory day without work guidelines.
Nevertheless, you may give exempt workers day without work after they work further. Exempt workers are exempt from FLSA laws, 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 enable the worker to take 10 further hours off for the additional time labored. Remember the fact that neither extra time nor further day without work is required for exempt workers.
Public sector
Based on the Division of Labor, public-sector nonexempt workers could also be eligible for comp time below sure circumstances.
Workers of state and native authorities businesses, for instance, can obtain comp day without work at a fee of at the very least 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 workers might accrue. Seek the advice of the Division of Labor’s web site for extra data.
What if workers comply with comp time?
So, what in case you and your personal, nonexempt workers comply with comp time as a substitute of extra time wages? Comp time continues to be unlawful.
Based on the Division of Labor, extra time pay for nonexempt workers can’t be waived, even when each workers and employers agree.
Can’t give comp time? Easy methods to calculate extra time
You should pay extra time wages to your nonexempt workers after they work extra time hours. Once more, you have to pay nonexempt workers time-and-a-half for any hours labored past 40 in a workweek.
Let’s say you could have an worker whose common fee of pay is $20. For extra time wages, the hourly extra time fee 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, it’s important to pay extra time wages as a substitute of granting comp time. Use Patriot Software program’s payroll software program to calculate extra time pay on your workers simply. Try our software program without cost!
This text has been up to date from its authentic publication date of Might 3, 2017.
This isn’t meant as authorized recommendation; for extra data, please click on right here.
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