What is Compensatory Time?
Sometimes an employer will ask you to work extra hours. In exchange, the employer might give you time off in the future instead of paying you for overtime. This time off is called compensatory time.
If I Have Worked Overtime, Is My Employer Allowed to Give Me Compensatory Time Instead of Overtime Pay?
Generally, the answer is no. Federal law requires that all employees on an hourly wage must be compensated for overtime work (i.e., more than 40 hours a week under federal law) by being paid 150% of their regular wage per overtime hour. While it is not considered legal in the private sector, employees working for the federal and state governments are allowed to receive compensatory time in certain circumstances. If you are a federal or state employee, consult your employee handbook or talk to your manager to find out what those circumstances are.
Can an Employer Ever Give Me Compensatory Time Instead of Overtime Pay?
An employer may rearrange the employee¿s work schedule during a pay period to provide compensatory time off instead of overtime pay. The employer may do this only if:- The compensatory time is taken during the same pay period as the overtime work; and
- The employee is compensated for the lost overtime premium by being given an hour and a half off for every hour of overtime worked.
What Should I Do if My Employer Illegally Gave Me Compensatory Time?
Wage laws can be complicated and vary from state to state. An experienced employment attorney can help you determine whether you were entitled to overtime pay. An employment attorney can also help you file the necessary paperwork and represent you in court. |
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