Law Library | Attorney Advertising | Financial Services | Affiliate Program | Blawg
Find the Right Lawyer Now:
Time Off Instead of Overtime Pay
In some states, including California, employers can sometimes compensate employees with time off for overtime, instead of overtime pay.
In most states, and under federal law, employers are required to increase the hourly rate for time worked over the standard workweek (40 hours) or the standard workday (8 hours). This rate is usually set at 50% higher than the employee’s regular hourly rate.
Time off can only be used instead of overtime pay under certain conditions. In California, it must be approved by a collective bargaining agreement. If the employee is not represented by a union, there must be a written agreement between the employer and employee which approves this type of compensation. The employee must also specifically request time off in lieu of overtime pay. The employer cannot impose it unilaterally.
The compensation must come in the form of 1 ½ hours of time off for every hour worked, assuming the employer pays the legal minimum for overtime. If the employer provides a higher rate of pay for overtime (such as double time), the time off must be commensurate with that. So, if an employer provides double pay for overtime, they must provide 2 hours off for every hour of overtime worked.
Also, the overtime that is compensated with time off cannot exceed 240 hours.
Consult a Lawyer - Present Your Case Now!
Find the Right Lawyer Now:
Did you find this article informative?
