There is No Comp Time in Business and at Work

As we all get ready to ensure compliance with the new  Federal overtime regulations raising the Federal minimum annual salary to determine that an employee is exempt from overtime to $47,476 a year effective December 1, 2016, I keep hearing the same concerning question at nearly every presentation and/or discussion for employers on the subject:

Q. Are employers (nonprofit or private sector) permitted to utilize comp time, instead of paying overtime?

A (from the U.S. DOL Wage & Hour Division). No, employers are not permitted to utilize compensatory time for employees instead of paying overtime. Only public agencies, such as state and local governments, are permitted to use compensatory time instead of paying overtime.

As you review your policies, practices and job descriptions in preparation for the December 1st deadline, please remember that there is no nonprofit or private-sector comp time in business and at work.

Time cube

Also published on Medium.

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