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Earned time expires. Legal?

Old 10-13-2016, 12:36 PM
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Default Earned time expires. Legal?

I work for a company with a pay structure of "Salaried: non-exempt from OT"

When I work > 40hrs in a week I can choose to get paid for the hours or bank them to COMP time; and use them whenever I choose. The company says if these hours go unused then they expire after a year. Is this even legal?

In my mind this is earned time. I understand that they don't want you earning it at one pay rate and using it at another, but if I've already worked the time how can they just take it away?
Old 10-13-2016, 12:54 PM
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No different than "earned" vacation time. Use it or lose it.

Plenty legal as a condition of your employment. Actually, being that they'll pay you for the time, it's your choice to lose it.
Old 10-13-2016, 12:58 PM
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Thank god our policy is any un-used time rolls over time and time again
Old 10-13-2016, 01:01 PM
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be very careful about accruing "too much" vacation time or trying to use it at the end of the year when everyone else is using theirs... lots of pitfalls but yes it appears legal. good luck.
Old 10-13-2016, 01:03 PM
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No good deed goes unpunished.

One year I was overdrawn on my vacation time by four or five days or so. Company demanded recompense in full either immediately by check or multiple pay periods. Had about a week of sick time unused...would they let me swap? Of course not. Why don't you ask me how many sick days I've let expire since??
Old 10-13-2016, 01:06 PM
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Out of curiosity, how much time did you bank? I haven't seen any situation in my working life where anything more than about a week could be cashed in, strictly speaking from a workload perspective. If you are regularly working OT, that tells me the opportunity to take any significant time off over and above earned vacation is pretty much non-existent. Once place I worked offered comp time, but required it to be used within 2 weeks of earning it. Working over was the exception to the rule there, so this generally meant that you could take an afternoon off, or very rarely a friday/monday.
Old 10-13-2016, 01:13 PM
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Comp time is always some back room deal between management and worker. I try to avoid it at all cost due to it being difficult to track and use. I would say the arrangement was shady to begin with.
Old 10-13-2016, 01:20 PM
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Originally Posted by Kenny Powers View Post
I work for a company with a pay structure of "Salaried: non-exempt from OT"

When I work > 40hrs in a week I can choose to get paid for the hours or bank them to COMP time; and use them whenever I choose. The company says if these hours go unused then they expire after a year. Is this even legal?

In my mind this is earned time. I understand that they don't want you earning it at one pay rate and using it at another, but if I've already worked the time how can they just take it away?
Sounds like a clear violation of FLSA, but I'm no lawyer.

Take the cash.
Old 10-13-2016, 01:50 PM
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Originally Posted by airbrush View Post
No different than "earned" vacation time. Use it or lose it.

Plenty legal as a condition of your employment. Actually, being that they'll pay you for the time, it's your choice to lose it.
There is a difference. Vacation time isn't truly "earned", it's given. This comp time is time that I have sat at my desk, worked, and chose to save for later.

Also, If I leave the company then they have to pay me for my unused vacation, they do not pay for unused comp time.... which again is time that was actually worked.
Old 10-13-2016, 01:51 PM
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Originally Posted by autobaun70 View Post
Out of curiosity, how much time did you bank? I haven't seen any situation in my working life where anything more than about a week could be cashed in, strictly speaking from a workload perspective. If you are regularly working OT, that tells me the opportunity to take any significant time off over and above earned vacation is pretty much non-existent. Once place I worked offered comp time, but required it to be used within 2 weeks of earning it. Working over was the exception to the rule there, so this generally meant that you could take an afternoon off, or very rarely a friday/monday.
16 hours

You're correct. I have not worked a 40 hour week in 2016, so I haven't had any time to use it anyway.
Old 10-13-2016, 01:52 PM
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They offer you the option to be paid. Why not take the money?
Old 10-13-2016, 02:02 PM
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Originally Posted by fishingfun View Post
They offer you the option to be paid. Why not take the money?
Just checked, I only banked 16 hours of comp time. I've worked 421 hours of OT in 2016 so far. So most of it is going to the checking account.

I work hard now, but that will likely change when I have kids. Time spent with family is worth far more than my hourly rate.
Old 10-13-2016, 02:12 PM
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Federal Govt has use it or lose it so I'm pretty sure it's legal.

The real question is at what pay rate are you being paid for your time over 40 hours.
Old 10-13-2016, 02:32 PM
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"Importantly, the DOL’s regulations do not authorize “use or lose it” comp time policies. Remember that comp time is simply a substitute for cash overtime. You cannot force a non-exempt employee to forfeit or convert cash overtime into something else, and you similarly cannot force a non-exempt employee to forfeit comp time or to convert it to sick time, vacation time, or other PTO."

http://www.wagehourinsights.com/2015...wage-hour-faq/
Old 10-13-2016, 02:33 PM
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Originally Posted by friogatto View Post
Federal Govt has use it or lose it so I'm pretty sure it's legal.

The real question is at what pay rate are you being paid for your time over 40 hours.
straight time, not 1.5x like a true hourly employee.
Old 10-13-2016, 02:41 PM
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The government has " use or lose " but you can carry over 240 hours .
Anything over that you would lose at the beginning of the year.
I'd take the cash. we did comp time where I work for awhile. I got screwd several times. As someone mentioned it's hard to keep track of.
Old 10-13-2016, 02:42 PM
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Originally Posted by friogatto View Post
Federal Govt has use it or lose it so I'm pretty sure it's legal.

.
is that at the discretion on the employer, as to if they (employer) let it roll over or what?
I dont see the GOV being able to tell the employer they cant let it roll over.....GOD i hope not......I have TONS of vacay and sick time accrued
Old 10-13-2016, 02:45 PM
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Originally Posted by Qb1rdman View Post
Sounds like a clear violation of FLSA, but I'm no lawyer.

Take the cash.
You are correct. They don't have the option to offer comp time in lieu of overtime pay to a salaried non-exempt employee.

Wages must be in cash.
http://www.flsa.com/overtime.html

For non-government employees, FLSA wages due must be paid in money. "Compensatory time" off in lieu of cash for FLSA overtime wages due is not permitted in private sector employment.
...
"Salaried nonexempt employees."

The FLSA does not require that nonexempt employees be paid hourly. Nonexempt employees may be paid by means of a salary. Salaried nonexempt employees are still entitled to FLSA overtime pay if, when and to the extent that they actually work more than 40 hours in a work week. FLSA overtime pay is time and one-half of the employee's regular rate of pay. When a nonexempt employee is paid by a salary, the amount of the salary must be converted to its hourly equivalent to determine the regular rate of pay (time and one-half of which is the employee's FLSA overtime rate of pay).
Old 10-13-2016, 02:47 PM
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Perfectly legal, but not exactly the way to promote employee enthusiasm.
Old 10-13-2016, 02:50 PM
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Wow, all this is one of the reasons that I freelance.

Too much to worry about.

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