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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