Nonexempt employees in the private sector must be paid for all hours worked. That includes overtime pay for all hours worked over 40 in a workweek as required under the Fair Labor Standards Act (FLSA).
Private sector employers are not allowed to compensate nonexempt employees with compensatory time off, or “comp time,” when those nonexempt employees have worked more than 40 hours in a workweek. Doing so is a violation of Section 7 of the FLSA and can lead to steep penalties for employers. Many states also have strict overtime rules. So instead of being provided with comp time, nonexempt employees must be paid overtime when required.
Use of comp time is allowed for some nonexempt employees in the public sector. It can also be used for exempt employees in the private sector. But comp time should not be used for nonexempt employees in the private sector.
Contact the employment attorneys at myHRcounsel if you have questions on comp time or other employee compensation issues.
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