Exempt employees must take their comp time within 26 pay periods of receiving it. Flextime is a company policy that allows employees to be flexible with their working hours by adjusting their shifts to accommodate their needs each pay period.
Unlike comp time, flextime accounts for a regular, non-overtime schedule and doesn't involve paid time off. If you have a comp time agreement with your employer and then work overtime, you have to be allowed to use your comp time before it expires. Find jobs. Company reviews. Find salaries. Upload your resume. Sign in. What is compensatory time? Compensatory time vs. Limitations to compensatory time. If you belong to a union, union representatives form agreements about compensatory time policies.
You and your employer must agree upon the terms of your compensatory time before it is credited to your payroll. Your employer must pay your hourly rate for one and a half hours for every hour of overtime you work.
Compensatory time must be taken in the same pay period as the overtime hours. Who can earn compensatory time? Frequently asked questions about compensatory time. Can compensatory time be paid out? Does compensatory time roll over? The legal requirements of each state also factor into what options might be available to you as an employee or as the employer.
Violations of the law relating to overtime pay can be viewed as wage theft and an attempt at evading the law, which can be accompanied by high fines and prison time in some states. You should always consult with an expert in wage and hour issues to best understand how to offer flexibility, yet still allow the company to maintain compliance with the FLSA.
There are ways for you to both clear the legal hurdles and provide your employees with options that give them the freedom to achieve a healthy work-life balance. In exchange, the employee would receive a half day off for a four-hour workday on Friday. They would still maintain a hour work week and would not earn any overtime. Flexible weekly scheduling benefits the employer as they would not have to pay the overtime premium.
The upside for the employees is it gives them access to short periods of time off each week that they might need to attend to personal matters or simply spend more time with their families. There are limits to such opportunities, which is why knowing the overtime laws — both state and federal — are so very important. Each work week stands alone under federal law, and this would not be considered flexible scheduling. In some states, such as California, state rules impose daily overtime requirements.
An employee who works more than eight hours in a day must be compensated at their regular rate of pay. Though often popular with employees, there are potential shortcomings for the government agencies able to offer comp time. Remember: offering comp time in lieu of overtime is not available to private employees. All employees need to be aware of the company rules regarding comp time.
Managers need to enforce those rules every time. Each of these points needs to be addressed in writing and should be presented to current employees as well as new hires during onboarding.
Employees should be directed to ask questions about comp time in advance. The DOL suggests reviewing your state law before figuring who is eligible, excluded or exempt from comp pay.
Offering comp time to your nonexempt employees instead of overtime could set you up for a potential lawsuit. Once you determine if your employees are eligible for comp time, the next task is determining how to calculate it.
Many companies choose to designate one hour of comp time equal to one hour of overtime. Since comp time is a term usually designated to government employees, some guidelines apply. For government FLSA-exempt employees, accrued comp time must be used within 26 pay periods from the pay period in which it was earned. The same goes for government nonexempt employees. As long as your employees are exempt from overtime you can give additional time off as a reward.
Flex time offers more than comp time, or PTO for any hours worked above 40]. It also encompasses lenient policies with regard to when employees must work in their offices. The basics are that the employees can choose when and where to work because the employer trusts them enough to make their own choices. Employees who are granted some freedom in their work habits tend to be more engaged and productive.
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