Comp time - when?

sbt

Am I correct that "compensatory time" in lieu of over time, is only an option in the public sector. If not, when/who could use it in the private sector? Is there a publication I can read on the subject offered by????????

Thank you.


Bud Turner

[email]sbturner@ix.netcom.com[/email]

Lori B

You are correct. Comp time is simply not allowed for nonexempt/hourly personnel in the private sector. There are periodic pushes in Congress to change this, but nothing has passed yet.

Pork

In the private sector Comp time can only be applied to EXEMPT CLASSIFIED EMPLOYEES. Make sure your employees are properly classified as exempt or non-exempt from FLSA. You can sometimes also provide adjusted time off for non-exempt employees within the same 40 hour pay period. Meaning that, if some one works ten hours today, in some states one can have the employee only work 6 hours the next day in the same 40 hour work week. In some states or union contracted companies, O/T may be required for any hour worked over 8 hours in any day, thus comp time is negated for non-exempt employees. So it always goes back to a proper understanding of EXEMPT VS NON-EXEMPT EMPLOYEES. Pork

HRManager

[font size="1" color="#FF0000"]LAST EDITED ON 12-27-02 AT 03:58PM (CST)[/font][p]I am so confused about comp time. I thought that exempt employees could not get comp time. I am in Minnesota and this is an issue at the small company wehre I work - (we are an S corporation, owned by two people who are part of the eight exempt employees. Help. Everyone pretty much comes and goes as they please. As long as the work gets done, we are pretty lax. BUT, the question comes up - if they work more than 40 - 45 hours per week, can they get time off in lieu?

Don D

Comp time for exempt employees is prohibited under the FLSA in the private sector. Comp time for non-exempt employees in the private sector amounts to one waiving his rights to overtime, which is also illegal under the FLSA.

HRManager

Thanks, is there anything else that can be done to compensate - legally?

Don D

We pay 'quarterly bonuses' to certain supervisory personnel to legally address what some might call comp time otherwise. Our shift supervisors who put in certain additional hours are paid bonuses (subject to taxes of course) on a quarterly basis. The DOL is not interested in this type of payment. We are careful to not refer to these payments as comp time or overtime or additional pay. They are bonuses. Lots of companies address this issue quietly and not in writing of course. But there's always the possibility of a 'exempt malcontent' blowing the whistle on things that might invalidate employee exempt status and cause the company to write additional overtime checks when DOL converts exempts to non-exempt status after they investigate. Be safe in your description of how you address this. The DOL is not nearly as interested in additional payments or bonuses as they are in the reverse....how you might be docking exempts for working short weeks.

Hatchetman

[font size="1" color="#FF0000"]LAST EDITED ON 12-27-02 AT 06:50PM (CST)[/font][p]Don, since the early/mid-1990's, the US Department of Laobr has issued repeated opinion letters stating its position that FLSA DOES permit the private sector employer to "compensate" the exempt employee for "overtime" (working more than the expected number of hours each week). The compensation may be a bonus, may be comp time, may be hourly pay.

DOL's position is that as long as the exempt employee's salary for the week isn't reduced in violation of FLSA 29CFR541.118, there is no jeopardy to the exempt employee's salary status if an employer pays MORE than the minimal salary for that week.

Don D

I fully understand that. That's why we do it the way we do. We don't announce that we track hours because of the red flag it will raise when you have a program tracking exempt hours with little 'other' explanation for why. Nor do we refer to the bonus as anything other than that, a bonus, and it's paid only to one category of exempt employee, shift supervisor. This, as it has been explained by the DOL, is the safest way to operate to keep other exempts from claiming they should be included as well and to keep employees informed that it is not a comp time program or an overtime program. Thanks, Don.

Pork

Dandy Don, now I am so confused. EXEMPT employees get paid for any number of hours worked regardless of the hours worked. However, you know as well as I that all EXEMPT employees keep book on the number of hours worked over 40. This "keeping book" is not necessary but they do it any way and we managers tend to make sure we are not making our management team mad so instead of taking a day of vacation or a week of vacation for special time off, we count it as COMPENSATORY TIME OFF, WE PAY THEM REGARDLESS OF THE HOURS WORKED.... THE SAME AS IN THE PUBLIC SECTOR. What line in the FLSA are you reading from that says i"t is specifically illegal"? I agree with your second sentence/statement! I look forward to your response! Pork

HRManager

I am confused Pork. What are you trying to say here - do we keep track and give time off or not?

Pork

Hrmanager: What I am saying is "There is no official tracking of an exempt's time worked"! We acknowledge that the exempt employees work all sorts of hours over 40 hours a week. I call it "25 hours a day and 8 days a week". What we do is acknowledge the EXEMPT extra and many hours of arduous work to keep the ship afloat, regardless of the exempt's time SPENT. When we call out the EXEMPT employee for an extra hour/after hours truck wreck, we sort of know how many hours I was on the scene investigating and recording and taking pictures, and cleaning up the mess and dismissing the crew no longer needed. I usually thank them for their extra hard work above and beyond their normal duties, and I insure they know the company does not expect them into the work until after xxx hours. Some will say ok, but I'll be in anyway! Some will say hey, I'll be in tomorrow, but I'll take you up on the extra time spent next week or next month. I make sure these EXEMPT dedicated employees (PEOPLE) are taken care of; the non-exempt employees are paid for all time out on this same call and it helps them to move closer to getting over their 40 hours.

IF WE DID NOT RECOGNIZE THESE EXEMPT EMPLOYEES/PEOPLE FOR THEIR SINCERE CALL TO EXTRA DUTY WITH COMPENSATORY TIME OFF, JUST HOW OFTEN DO YOU THINK I COULD GET THEM TO LEAVE THEIR FAMILIES AND THEIR PERSONAL TIME OFF TO HELP ME WITH A MESS??? THE ANSWER IS NOT MANY AND NOT LONG AFTER THE FIRST TIME!

It is not really confusing, I was just toying with "Dandy Don". Happy New Year, everyone and you to "Dandy Don" see you on the net next year.

Don D

Pork (and all): Toying with others is one thing (and fun, as I can attest). However, I would advise against posting on the web that you are in violation of the law. Your 'rewards' program for employees, although you may have to explain it later, need not necessarily be announced on the Internet.

System

sbt,

I just researched this issue, so I need to type fast before I forget it all.

I think everyone's on target about comp time for non-exempts in the private sector -- you can't do it except for very limited exceptions.

As for exempts, it's technically legal. But if they ever claim that they're really non-exempt, then the fact that you closely monitored their hours could be evidence in their favor. Giving comp time on an informal basis (a day off for someone who worked long hours on a big project) would be less risky.

There's a good article in our Employment Law Letter in Texas and other states called "Exempt workers and comp time." If you don't subscribe already, it's a pretty good deal.
[url]http://www.hrhero.com/statenews.shtml[/url]

My favorite source for FLSA info is our HR Executive Special Report called "Defusing the Overtime Bomb: How to Comply with the FLSA." Employment Law Letter subscribers can read it online at no extra charge in the members area of this website. If you don't subscribe, you can buy this Special Report here:
[url]http://www.hrhero.com/special.shtml[/url]

Good luck.

James Sokolowski
Senior Editor
M. Lee Smith Publishers