Comp Time

cburnett

It is my understanding that the FLSA does not allow private industry
the right to offer comp time in lieu of overtime.
However, my employees ask every year for a comp time policy.
Are any private employers out their offer comp time, and if so, what type of policy and tracking procedures do you have in place?

Down_the_Middle

I'm assuming we're talking about the use of comp time (in lieu of overtime payment) for non-exempt staff......... I would stay away from this "trap" of being encouraged to develop such a policy. As a private employer, you're not entitled to it, so why would you box yourself into a corner and endure all the recordkeeping issues that accompany a comp time situation? This will likely become a smoking-gun for regulatory agencies to "sniff".

Margaret Morford

I agree with Down-the-Middle. Every company I've ever known that puts in a comp time policy lives to regret it. I think that you have two issues going here. Comp time as you are thinking means giving non-exempts time off in lieu of paying overtime. You're absolutely correct. Private employers can't do that. What I believe your employees are asking about is comp time for exempt employees when they work more than 40 hours per week. I really would stay away from that. It will make some exempt employees stretch out the time needed to do their job to get paid additional money. You would be so much better off to reaward exempt employees that really put in a huge amount of overtime on a project either a day off or a cash bonus to express your appreciation. If you must do it, start paying comp time after 45 hours so that you really are paying those exempt employees that are working excessive overtime and not the ones that hang around a hour or two each week. Call me if you need a written policy for this I have one (615-371-8200), but again I'm encouraging you not to institute comp time for exempts.

Margaret Morford
theHRedge

Rockie

Margaret: I was told that if we attempt to give formal "comp" time for exempt employees that we could be endangering their exempt status by trying to compensate them either in time or money for hours worked over what they consider to be their "hours worked". A lot of exempt people think if they work over 40 hours, they are working "over" requirements. "Comp" time is becoming mroe and more an issue not only with hourly people, but also with exempt individuals.

Margaret Morford

Rockie, I appreciate your raising this issue. The DOL has always said that you can pay exempt employees for more than 40 hours in any manner you choose, including offering comp time. However, you cannnot treat them like non-exempt employees and dock them when they work less than 40 hours per week. Intermittent FMLA leave is the exception to this policy. Call me if you have any questions or want to discuss this issue further.

Margaret Morford
theHRedge

Rockie

Basically, under FLSA, at the present time, comp time is illegal for the private sector. If an hourly person works overtime, they must be paid for it. If an exempt person works over what they consider "normal" work hours, and they are given "comp" time, this can jeopardize their exempt status.

I understand there is some legislation pending that would give companies the option of allowing hourly individuals to accrue comp time in lieu of overtime payment. However, this has not been signed into law.

Personally, I have been getting more and more requests of this type also. Employees seem to be putting more emphasis on having the time off than the extra pay. Another thing that concerns me is that a lot of this is also coming from the exempt arena. People are not willing to work much over what they consider a normal work week. The 60 hour executive is no longer a normal way for people to work. A lot of exempt level people are wanting to have their hours adjusted to work less than 5 days a week. You have to be very careful when adjusting work schedules and "hours" of exempt people in particular.

This is just a sign of the times that employees are wanting more flexibility and control over balancing their work lives and their personal lives. I can foresee that this is going to be a major HR challenge in the coming few years.

Mikki H

[font size="1" color="#FF0000"]LAST EDITED ON 06-13-01 AT 09:41AM (CST)[/font][p]We like all of our employees to have 40 hour weeks. We allow them to take that 1 hour off for an appointment if they need it (without dipping into their PTO) and request that they make it up within the same work week. Since we do not pay for OT unless they work over 40 hours, so we do not get into the "comping out" for OT issue. Also, we do not call it "comp" time but "time off in lieu of pay".

However, I have heard that we can allow the "comp" to carry over into the next week if it is still within the same pay period, but then we would have to compensate at the OT rate by giving 1.5 hours comp. We do not get into that issue, we consider each week separate, if then end up working OT one week we pay it out and then they would be "short" hours the next week. It is easier on the accounting side, and I think better to keep us out of trouble.

System

Our company provides Comp Time, but only to exempt employees and only as a benefit above and beyond their annual salary.