Comp time bill could provide alternative to overtime in private sector

A common employee benefit for government workers is being considered for expansion to the private sector.

Compensatory time, a form of paid time off earned in lieu of overtime, may come into play for all employers based on recent legislative action, according to legal news provider Lexology.

Under the auspices of the Fair Labor Standards Act, some state and local government employees are offered the option of receiving paid time off after working 40 hours in a week, instead of overtime pay. Each hour of overtime worked translates into one-and-one-half hours of paid time off. Comp time can spread out the sometimes-heavy costs that come with overtime payments.

The U.S. House of Representatives passed the Working Families Flexibility Act of 2013, which contains a provision for private companies offering comp time for employees, last year and the bill is currently being considered by the U.S. Senate. The measure would be completely voluntary if passed, meaning that workers would have to agree to getting comp time instead of overtime pay and acceptance of the standard could not be a mandatory prerequisite of employment.

To help keep track of overtime and comp time, companies need effective and adaptable employee management software.


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