Given Comp Time Instead of Overtime Pay?
A private-sector employer gives paid time off ("comp time") instead of cash overtime pay — generally not permitted for private employers.
What This Looks Like
- Told that instead of time-and-a-half pay, overtime weeks earn an extra vacation day.
- Overtime hours are "banked" instead of paid, and the bank is never cashed out.
- A small employer assumes comp time is a lawful substitute for overtime pay for all employees.
What Can Affect a Case Like This
What can affect a case like this includes how many overtime hours were "paid" only in comp time rather than cash, whether that time was ever actually paid out, how long the practice went on, and whether it was applied company-wide.
Common Questions About Comp Time Instead of Overtime Pay
Can a private employer give comp time instead of overtime pay?
Generally, no. Under the FLSA, private-sector employers must pay non-exempt employees cash overtime for hours over 40 in a workweek. Compensatory time off in place of overtime pay is largely limited to public-sector employers.
Is adjusting my schedule within the same week the same as comp time?
No. Rearranging hours within the same workweek so you never exceed 40 hours is generally treated differently than banking overtime hours to use in a later week, which is where problems typically arise.
Is banked time I never used still owed?
If overtime was 'paid' only as banked hours instead of cash, the underlying overtime may still be owed. An attorney can review how your hours were tracked and paid.
State Rules Can Change the Picture
Federal law sets the baseline, but state law can add protections that matter for this kind of claim. States that can require daily overtime include:
See overtime laws for all 50 states →