What is FLSA compensatory time?
Compensatory time off is paid time off the job which is earned and accrued by an employee in lieu of immediate cash payment for employment in excess of the statutory hours for which overtime compensation is required by section 7 of the FLSA.
How does FLSA affect compensation?
The FLSA limits the amount of overtime nonexempt employees can earn to 240 hours of comp time or 160 hours of paid overtime. Police, emergency response, and seasonal employees can earn a maximum of 480 hours of comp time or 320 hours of paid overtime.
Can an employer require an employee to use compensatory time?
Comp time must be issued at a rate of not less than one and one-half hours for each hour of overtime worked. However, where there has been no agreement, nothing in the FLSA prohibits public employers from requiring employees to use comp time after they have accumulated a certain number of compensatory hours.
Who is exempt from FLSA provisions?
The five primary exemptions are executive, administrative, professional, computer, and outside sales employees.
What is compensatory time?
Compensatory time off is. Time off with pay in lieu of overtime pay for irregular or occasional overtime work, or. When permitted under agency flexible work schedule programs, time off with pay in lieu of overtime pay for regularly scheduled or irregular or occasional overtime work.
Is compensatory time off legal?
The U.S. Department of Labor (DOL) describes compensatory time, or “comp time,” as “paid time off the job that is earned and accrued by an employee instead of immediate cash payment for working overtime hours.” Although compensatory time off for nonexempt employees is an acceptable practice in the public sector, the …
What employers are covered by FLSA?
Employers Who Are Covered The FLSA applies only to employers whose annual sales total $500,000 or more or who are engaged in interstate commerce. You might think that this would restrict the FLSA to covering only employees in large companies, but, in reality, the law covers nearly all workplaces.
Why is FLSA important to employers?
The FLSA regulates the minimum amount of money that employers are allowed to pay their non-exempt workers. These rules are important because they ensure that workers understand the minimum amount of money that they are guaranteed to earn.
Who is eligible for comp time?
In short, salaried employees can receive comp time if they work for the public sector, are classified as non-exempt, and work beyond 40 hours per week.
Are FLSA provisions always exempt?
Some employees are exempt from FLSA requirements, such as pay for overtime and minimum wages, even though their employers are covered. For example, many airline employees are exempt from the FLSA’s overtime provisions. And most companions for the elderly are exempt from both minimum wage and overtime provisions.
What is exempt and not exempt?
The primary difference in status between exempt and non-exempt employees is their eligibility for overtime. Under federal law, that status is determined by the Fair Labor Standards Act (FLSA). Exempt employees are not entitled to overtime, while non-exempt employees are.
Can FLSA exempt employees earn comp time?
Employers in the private sector are legally allowed to offer exempt employees comp time, under FLSA section 207(o). Under the FLSA, exempt employees are not eligible for overtime pay, so any comp time offered for hours worked in excess of 40 per week falls at the sole discretion of the employer.
How to determine if you are covered by FLSA?
The Coverage and Employment Status Advisor helps identify which workers are employees covered by the FLSA. The Hours Worked Advisor provides information to help determine which hours spent in work-related activities are considered FLSA “hours worked” and therefore must be paid.
When does the US Department of Labor release the FLSA final rule?
On June 21, 2021, the Department announced a rulemaking titled, “ Tip Regulations Under the Fair Labor Standards Act (FLSA); Dual Jobs, ” proposing to revise the portion of the 2020 Tip final rule addressing the application of the FLSA’s tip credit provision to tipped employees who perform both tipped and non-tipped duties.
When do you get paid overtime under FLSA?
FLSA Overtime: Covered nonexempt employees must receive overtime pay for hours worked over 40 per workweek (any fixed and regularly recurring period of 168 hours – seven consecutive 24-hour periods) at a rate not less than one and one-half times the regular rate of pay.