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Comp Time or Overtime, What’s Your Opinion?

For years, I have advised private-sector employers in how to be compliant with the overtime rules of the Fair Labor Standards Act (FLSA).

Many families today consist of both parents having to work to support the family.  This brings forth some work/life issues that were not so prevalent in earlier years.  Children in daycare or school, elderly parents, etc. who become ill or are unable to attend their normally scheduled day, need someone to care for them. This could mean requiring the caregiver, your employee, to take time away from his or her job.

Legislation is presently looking at whether or not compensatory time (comp time) should be allowed in lieu of overtime pay.

This could be a beneficial alternative for both the employer and the employee.  The challenge for employers is which is more affordable? Paying employees 1 ½ times their hourly rate for hours worked in excess of 40 or providing the employee with additional paid time off in lieu of overtime pay.

How would this affect you as an employer?