I work a lot of overtime, but my boss wants to give me time off instead of overtime pay. Is that Ok?

By Douglas Lipsky

When an employer wants to give an employee time off in lieu of or instead of overtime pay we generally refer to that as comp time or compensation time. In 99.9% of the cases that does not work. There are limited exceptions where comp time is permissible. Uou’ll generally see it with civil servants and first responders like firefighters, police, other public sector employees. But in the private sector, it’s very very difficult for employers to get that right. So you don’t see it very often and if an employer is using it they’re almost certainly doing it incorrectly. The other thing too is there’s there’s rules around the timing of when your wages have to be paid. So a lot of times if you’re gonna use comp time it has to be used within the same pay period. So people think they’re gonna build up this bank of comp time and use it six months from now when in fact, even if you had comp time and it was done correctly and calculated correctly, which is a big question, you’d literally have to use it later that same week.

About the Author
Douglas Lipsky is a co-founding partner of Lipsky Lowe LLP. He has extensive experience in all areas of employment law, including discrimination, sexual harassment, hostile work environment, retaliation, wrongful discharge, breach of contract, unpaid overtime, and unpaid tips. He also represents clients in complex wage and hour claims, including collective actions under the federal Fair Labor Standards Act and class actions under the laws of many different states. If you have questions about this article, contact Douglas today.