Comp time or overtime? House bill gives employees the option

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On behalf of Daniel Watkins of Watkins Firm, A Professional Corporation posted on Friday, May 10, 2013.

Exempt, nonexempt, hourly, minimum wage, overtime pay, rest breaks, meal breaks, vacation time, floating holidays, comp time and much more. Keeping it all straight and above board is a full time job for employers. Following California and federal laws isn’t even the half of it. Contract disputes brought by employees often occur that can affect the profitability of a company.

Adding to the headache, lawmakers are constantly proposing changes. Employers in California will want to consult with an attorney over staying abreast of the changes that are occurring every day, like the proposed legislation that was just passed in the U.S. House of Representatives.

The bill that was passed on Wednesday, May 8 address “comp time” for private-sector employees under the title of the Working Families Flexibility Act. The measure was passed as a part of the “Making Life Work” agenda and allows the employees to take the comp time for the overtime hours that they accrue above 40 hours per week.

The bill does not force the result of comp time instead of the traditional time and a half pay, but it provides them with the option to choose one or the other. Supporters of the bill include people like a House Majority Leader Eric Cantor who said that “as a father of three, I can tell you as a working parent, I know that it’s very necessary to be there for your children.”

Others are not as enthusiastic about the measure, saying that it coule effectively cut employees pay in half. It could actually disadvantage family employees who may not have the extra time to volunteer for overtime.

For employers, it would mean not only looking at how to work with employees’ new option, but how to ensure that they aren’t violating new laws. This is where a contract attorney can step in to help advise an employer on the front end and protect them should a dispute arise.

Source: Times Dispatch, “House passes Cantor-backed measure on comp time,” May 10, 2013