Can companies offer comp time for extra work over the holiday season?
As companies look to keep up with growing demand this holiday season, they extend hours of operation for more coverage. Some businesses bring on seasonal employees for this reason, while others allocate their current workers additional time and attendance.
In a recent article for the Boston Globe, an employer asked about payroll practices regarding comp time, or compensatory time off. That means that businesses issue paid time off instead of premium pay rates if employees work overtime. For every hour staff members work beyond 40 each week, they receive one-and-a-half hours of comp time instead of extra pay.
The employer asked the news provider if this practice was in compliance with the Fair Labor Standards Act (FLSA) because it was the only way to affordably cover overtime work. In response, Patricia Hunt Sinacole wrote that businesses must be very careful when offering comp time instead of time-and-a-half wages and that in most retail environments, this will not be allowed.
When discussing acceptable comp time substitutions, the FLSA only includes provisions for interstate government agencies, public agencies of subdivisions of those groups. If businesses do not fall within those categories, they should be prepared to prove they are paying all covered workers at least minimum wage for all of their employee attendance and premium pay for time spent on-the-clock beyond 40 hours each week.
In a recent article for the Boston Globe, an employer asked about payroll practices regarding comp time, or compensatory time off. That means that businesses issue paid time off instead of premium pay rates if employees work overtime. For every hour staff members work beyond 40 each week, they receive one-and-a-half hours of comp time instead of extra pay.
The employer asked the news provider if this practice was in compliance with the Fair Labor Standards Act (FLSA) because it was the only way to affordably cover overtime work. In response, Patricia Hunt Sinacole wrote that businesses must be very careful when offering comp time instead of time-and-a-half wages and that in most retail environments, this will not be allowed.
When discussing acceptable comp time substitutions, the FLSA only includes provisions for interstate government agencies, public agencies of subdivisions of those groups. If businesses do not fall within those categories, they should be prepared to prove they are paying all covered workers at least minimum wage for all of their employee attendance and premium pay for time spent on-the-clock beyond 40 hours each week.
All data and information provided on this news blog is for informational purposes only. Infinisource makes no representations as to accuracy, completeness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis. Information regarding employment suits and other legal action is not updated after publication, and may not be current.