In understanding laws and regulations around employees and payroll, here are some FAQs to consider:
What is “comp time” or “compensatory time”?
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.”
While comp time is a widespread practice, it is usually illegal for private-sector businesses (including private-sector nonprofit agencies) to compensate overtime-eligible (nonexempt) employees with comp time instead of overtime. These rules are housed under the Fair Labor Standards Act (FLSA).
Is “comp time” legal?
For Non-Exempt Employees (Hourly or Salaried): No
Compensatory time off in place of payment for overtime is not legal under either federal or state law, with some minor exceptions for government entities or emergency services.
“Is compensatory time allowed in the private sector?” by SHRM, July 11, 2019
General Wage and Hour Questions” by Pennsylvania Department of Labor
EXAMPLE: John, a nonexempt employee, works 56 hours during one week. His boss tells him he can take two days off the following week in lieu of overtime pay for the 16 hours he worked in excess of 40. John’s boss could be exposing his company to a lawsuit.
“Everything You Need to Know About Comp Time” by Intuit Quickbooks, 2022.
For Exempt Employees: Maybe
Employers in the private sector are legally allowed to offer exempt employees comp time, under FLSA section 207(o). However, comp time is by no means required for exempt employees. 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. If you choose to offer comp time to exempt employees, it’s important to create a policy that governs how and when comp time will be offered, so the benefit is applied consistently.
“Everything You Need to Know About Comp Time” by Intuit Quickbooks, 2022.
What is “Flex Time”?
Flex time refers to a working schedule with a flexible set of starting and ending hours. Whereas a traditional schedule is from 9 a.m. to 5 p.m. per day, a flex-time schedule allows employees to arrive, for example, at 8:30 a.m. one day and 10 a.m. the next. Flex time allows employees to avoid overtime by adjusting hours during the workweek, but still remaining at or below the maximum amount of hours permitted.
Employees with flex time schedules work the same amount of hours as those with a traditional work schedule. Also, companies with this type of schedule are typically flexible on the particular hours you begin and end work so long as you work all of your required hours for the day.
“Flex Time: Definition and Examples” by Indeed Editorial Team, Updated February 22, 2021A flexible work schedule is an alternative to the traditional 9 to 5, 40-hour work week. It allows employees to vary their arrival and/or departure times. Under some policies, employees must work a prescribed number of hours a pay period and be present during a daily “core time.” The Fair Labor Standards Act (FLSA) does not address flexible work schedules. Alternative work arrangements such as flexible work schedules are a matter of agreement between the employer and the employee (or the employee’s representative). The U.S. Department of Labor has conducted numerous surveys and published articles and reports on the subject.
“Flexible Schedules” by U.S. Department of Labor, 2022
What are some considerations about Flex Time?
- Check with a local solicitor, lawyer, or payroll firm to verify your library’s individual situations about what’s legal for your employees.
- Know how each staff member and director is categorized when it comes to exempt or non-exempt. A staff person can be salaried and still be non-exempt.
- Find more here: https://www.shrm.org/resourcesandtools/tools-and-samples/hr-qa/pages/whatismeantbythetermsexempt,non-exempt,salariedandhourly.aspx
- Whatever your library chooses to do legally, write up a policy that’s fair for all and applied consistently. Set clear boundaries of what’s permitted as work hours, and the library director should implement the policy by coordinating any comp or flex time based on the approved policy.
- Consider the liabilities to the library. If a staff person has tracked their time, even jotting it down on a personal calendar, their case is more likely to hold up in court. Make sure all staff know the rules and expectations.
Last Updated: September 2023
This information is provided to the best of our knowledge as of the date provided. Information is subject to change without notice. While authoritative, it is not guaranteed for accuracy or legalities. If there are questions, please reach out to your district consultant, who may encourage your library to ask a local solicitor/lawyer for further guidance.