Are You Receiving Comp Time When You Should Be Paid For Overtime

Compensation pay or comp time is a common term which many employees tend to encounter. For those who are unfamiliar with compensation time, or commonly known as “comp time”, this is the time off given to an employee to set-off the number of hours of overtime he or she has worked in a particular week.

There are many employers who make use of “comp time” arrangements with their employees and the workers don’t seem to mind thinking that this is just a normal labor practice. Unfortunately, what many employees do not know is that compensation time is not always applicable to all employers. Based on the Fair Labor Standards Act or the FLSA, only public employers or government agencies are allowed to offer “comp time” to their non-exempt employees, instead of paying them overtime pay. Sadly, there are many private companies and businesses which make use of “comp time” instead of paying their employees overtime pay.

According to the FLSA, a private, non-exempt employee is entitled to overtime pay for the number of hours that he or she has worked in excess of 40 hours in a given work week. As such, the private employer is not allowed to give “comp time” to their non-exempt employees instead of giving them over time pay, which is one and a half times their regular rate of pay. A lot of private businesses prefer to give compensation time instead of overtime pay, since they would essentially avoid paying the higher rate of pay for overtime that is mandated by the law. This is a very common problem, and unfortunately, countless employees continue to work without knowing about their right to receive overtime pay.

Even with public employers or government agencies where compensation time is legal, it may still be improperly applied. According to the law, compensation time should also be at a rate of one and a half times the number of hours worked in excess of 40 hours in the work week. So if a public employee worked 10 hours of overtime, he or she is entitled to 15 hours as provided for by the law and not 10 hours of “comp time” as what many public employers may think is correct.

Learning more about compensation time and how it is properly applied is really important for both public and private employees. If you believe that your employer is improperly making use of compensation time to avoid paying overtime pay, then please contact us immediately for a free consultation. We are more than happy to help you to claim the overtime pay that you lawfully deserve.