Comp Time

Awarding comp time for extra hours worked is a common strategy  that can backfire. The FLSA (Fair Labor Standards Act) lays out strict rules for what basis can be used for awarding comp time, when it's illegal to give comp time in lieu of cash overtime, and how extended pay periods, like two-week schedules, must be handled.

 

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FAQs

1. Are companies required to award comp time to their exempt employees? If so, on what basis?
   
   
2. Is paying comp time to non-exempts in lieu of cash overtime legal?
   
   
3. Can an employer avoid paying overtime by extending employees' pay periods to two weeks and offering comp time?