FLSA and Banked or Comped Time

Attorney Richard Celler

Employers in the private sector are not permitted to bank time for hours worked over 40 in a workweek, or give comp time instead of overtime.  The Fair Labor Standards Act specifically requires that if employees work more than 40 hours in a workweek, they must be paid cash or its equivalent.  Therefore, if your employer is giving you something called “banked” or “comp time” when you work over 40 hours in a workweek, your employer is violating the Fair Labor Standards Act.  And, if you work for the government, this practice may not be a violation of the Fair Labor Standards Act.

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