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teg916
10-25-2006, 10:11 AM
I work for a pretty new company and they were recently askeed us what benefits we would like to see them offer in addition to what they already offer. I suggested that they offer comp vacation time in exchange for overtime pay. I was told that this is not legal in California. I was under the impression that it is legal to do that. My girlfriend works for the county of Sacramento in California and they offer her this benefit. Unless I am wrong, where could I find some legal references in order to show them that this is legal?

cbg
10-25-2006, 10:41 AM
It is not legal in any state for private employers. Since your girlfriend works for the county, she falls under the rules for public employment and comp time is legal. But no matter what state you live in, Federal law prohibits substituting comp time for overtime for private employers.

The employer is correct. You are wrong.

ScottB
10-25-2006, 12:21 PM
Sorry, apples and oranges. Government agencies are allowed by law to give comp time. Private employers cannot do that.

Now there is an issue to discuss with candidates for public office.

So, that option is out for you, what else would you want to recommend as benefits?

Bear in mind that anything you dream up has some cost.

There is no way I could suggest anything without knowing what you get already (and don't tell me).

BSPCPA
10-25-2006, 12:50 PM
teg916 wrote: I suggested that they offer comp vacation time in exchange for overtime pay... I was under the impression that it is legal to do that.

While California does requires overtime pay (time-and-a-half) after 8 hours in a day. There are, in fact, legal ways an employer can offer a private sector employee unpaid comp time in exhange for daily overtime pay.

Option No.1: Your company might adopt what is referred to as an Alternative Workweek Schedule (AWS) -- whereby employees work, for example, 10 hours each day (Monday-Thursday) and have Friday's off. Under this scenario, all working hours can be paid at "straight-time" only pay. California does have rules and procedures regarding the establishment of AWS's, so you should seek professional advice before implementing.

Option No 2: Even without an AWS, Labor Code 513 allows employers to let employees work daily overtime (up to 11 hours per day) and exchange their overtime for comp time in the same week. For example, if an employee wanted to take Friday off, he could arrange with his employer to work 3 hours OT on Monday, 3 OT hours on Tuesday, and 2 hours OT on Wednesday -- all paid at "straight-time" only pay in exchange for getting Friday off.

While there are "tricks" and employer can use to avoid the cost of daily overtime pay in California, there also "traps" associated with them, so I urge you consult with a CPA and/or labor law attorney versed in such matters.

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