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A client of mine is thinking of offering comp time to exempt employees for hours over 50 in a work week. They are planning to use Fri through thur for the measured week while Sun through Sat is the wo
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Comp Time off
posted at 6/9/1999 12:51 AM EDT
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Posts: 9
First: 6/9/1999
Last: 5/2/2001
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A client of mine is thinking of offering comp time to exempt employees for hours over 50 in a work week. They are planning to use Fri through thur for the measured week while Sun through Sat is the work week for tracking non exempt hours. Any problem?
Jim Smith
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Comp Time off
posted at 6/9/1999 2:12 AM EDT
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Posts: 38
First: 6/9/1999
Last: 10/26/2004
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FROM Your Hosts at EB&G
Jim;
As you know, under the Federal Fair Labor Standards Act ("FLSA"), an employer may not compensate non-exempt employees for working overtime or working extra "straight time" hours with compensatory time. Most state wage and hour laws have similar rules. Exempt employees, however, GENERALLY may be compensated for that "extra" effort as an employer sees fit. Thus, under the FLSA, the DOL has taken the position that if an employer wants to pay exempt employees for "overtime" work, that is the employer's right. Same holds true for time off in lieu of pay.
Recognize, however, that in the real world the difference between an exempt employee (where compensatory time is lawful) and a non-exempt employee (where compensatory time in not lawful) may be hard to figure out. In those cases, one of the things that the courts and the DOL look at is how did the employer treat the employee. If the employee treats these "sort of" exempt employees by tracking time and compensating them for "overtime" work with time off, then that fact alone might be enough to tip the scales of justice in favor of finding the employees to be non-exempt. The employer looks like it is treating the employees as if they were hourly workers, so why not pay them as hourly workers, says the DOL. Also, note that some state wage and hour laws might be different than the DOL's interpretation under the FLSA. Thus, when considering these global issues, it is always wise to consult with a labor and employment attorney about the specific policies or practices you wish to implement.
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