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.

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