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Comp Time
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Comp Time
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I work for a small company and in one department we have 4 trainers who work for one manager. The manager was recently let go.
We have recently found out that she has been allowing employees (all a
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Forums » Topic Forums » Benefits & Compensation » Comp Time
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Comp Time
posted at 2/17/2010 3:38 AM EST
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Posts: 14
First: 10/16/2009 Last: 6/21/2010 |
I work for a small company and in one department we have 4 trainers who work for one manager. The manager was recently let go.
We have recently found out that she has been allowing employees (all are exempt) to bank any time worked over 40 hours per week to use as comp time. We have 2 employees who have no comp time banked - one chose not to do it since he is exempt and feels it is part of his job to work over 40 hours, and one does not have any banked. For the other 2, one has 117 hours banked and the other has 40 hours. We are trying to determine the best way to treat these employees fairly, yet we feel that 117 hours is excessive. This is on top of her vacation time she already has available. We now have a mess to clean up and are now drafting a Comp Time Policy. But in the meantime, are we obligated to give these employees this time off since their former manager had committed to them that they could? My initial thoughts are yes. Any suggestions on how to deal with this in a fair manner? |
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Comp Time
posted at 2/17/2010 3:50 AM EST
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Posts: 2146
First: 2/15/2006 Last: 9/14/2011 |
Ouch that's a hard spot to be in. On one hand, the manager represented the company's point of view and promised a benefit. With the one employee refusing it, is there cause to believe that the others knew it was wrong but took it anyway? Or are they viewed as "innocent" in all this?
Are there other exempt employees under other managers who didn't benefit from such a scheme? Then there is the question of whether the company has to honor an unwritten policy by a manager -- did that manager have the right to create such a policy? What state are you in? In some this might be considered accrued/earned such that the company would be absolutely liable to pay it out. In others, it could possibly be forfeited (much to an employee's dismay as they feel they HAVE earned it). What documentation do you have? Who is stating they have this time available? Honestly I would suggest running the situation by an attorney in your state who is very familiar with both labor and wage laws. Either way, you will have morale issues...if you take it away, the ones with a balance won't be happy...if you don't, the ones who didn't accrue any won't be happy. |
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Comp Time
posted at 2/17/2010 3:57 AM EST
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Posts: 14
First: 10/16/2009 Last: 6/21/2010 |
Thanks for your input.
These employees are good employees, and I believe they were just doing what their manager instructed them to do. We do not believe there were any bad intentions. The manager did not provide employees anything in writing about this, but they are tracking hours worked over 40 on the same template. |
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Comp Time
posted at 2/17/2010 4:36 AM EST
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Posts: 2146
First: 2/15/2006 Last: 9/14/2011 |
Comp time is illegal for non-exempt employees, but can easily be used for exempt employees. But it is NOT common to do so. Some companies do calculate hours over 40 for other reasons -- performance reviews, bonuses, promotions etc.
I too disagree with hour for hour tracking, but it is not illegal. From most HR perspectives, the exempt salary is meant to compensate for a variety of hours throughout each week. If you want to pay by the hour, then make all employees non-exempt. Another negative to think about on this is that if salaries are increasing, the hours paid out later might be paid out at a higher rate than currently earned. There could be a larger liability than expected. In any case, if your employer decides to implement an actual comp time program, I suggest it be defined in writing. |
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Comp Time
posted at 2/17/2010 4:37 AM EST
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Posts: 1103
First: 3/16/2007 Last: 8/19/2011 |
This is not an "illegal" practice and for exempt employees is permissable.
The Department of Labor's position on compensatory time for exempt employees is that extra pay above and beyond the salary does not violate the salary basis for the exemption. Perhaps wanting to encourage extra pay for such workers, DOL states that as long as exempt employees receive a guaranteed salary free and clear of any reductions on the basis of quality or quantity of time worked, extra pay or extra leave time for extra work is permissible. [b]29 C.F.R. 541.118 ( provides that "additional compensation besides the salary is not inconsistent with the salary basis of payment". DOL's Field Operations Handbook, Section 22b01, states that "Extra compensation may be paid for OT to an exempt employee on any basis. The OT payment need not be at time and one-half, but may be at straight time, or flat sum, or on any other basis." In other words, an employer is allowed to pay exempt employees who work over a stated minimum number of hours (45, 50, or whatever) in a week will receive extra pay or compensatory time on a straight-time basis for each additional hour.[/b] Some companies that have a difficult time attracting and keeping qualified employees find that they must offer additional pay like that as an incentive to join and stay with the company. Wcalhoun I would suggest you share this with your General Counsel. |
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