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#1

Recommendation for "Comp Time" Policy for Exempt Employees  
Posted: 10/15/2009 09:01am   247 Views
  

Does anybody know the legal/practical limitations for exempt employees requesting "comp time"?  We want to build a policy that allows for flexibility when an exempt employee works for extended hours on a special product, works long hours during budget season, other special/extreme circumstances, etc.  Since it's only in special circumstances, we don't want to build a formal 4-10 model (i.e., work 4 days for 10 hours, and then take the next day off) or anything like that.  In a special circumstance situation, does the employee have to take the "comp day" within the same pay period (as non-exempt employees are expected to do)?  I am putting "comp day" in quotes because I think that term actually applies to the public sector (and we are non-profit).  Thanks for any advice. 


#2

Recommendation for "Comp Time" Policy for Exempt Employees  
Posted: 10/15/2009 09:07am   Revised: 10/15/2009 09:08am  
  

Non-exempt rules under the FLSA for comp time don't apply to exempt employees. If you want more background, I believe a search here with the words comp time and exempt should help.


Private10790

   
Recommendation for "Comp Time" Policy for Exempt Employees  
Posted: 10/15/2009 11:22am  
   (2 ratings)

You could simply ask the affected workers if they want to take an extra day off or just come in at noon for a few days or whatever they want.   As long as they get what they want and it is acceptable to you, that's all there is to it.  Perhaps you might need to know their plans for specific scheduling, but there are no governing laws or rules controlling exempt time off, in general.


Private11409

   
Recommendation for "Comp Time" Policy for Exempt Employees  
Posted: 10/16/2009 06:37am  
   (1 rating)

Another idea is to educate your managers and employees around the meaning of exempt -- employees are paid for the work they perform, not the time it takes them to perform it.  If all performance expectations are being met (projects completed, turnaround times within acceptable parameters, as well as any other specific job requirements) the actual 'face time' an employee puts in should not be of question.  However, if performance suffers due to 'time away from the job' then it can be addressed as a performance issue, subject to your normal disciplinary procedures.


#2

Recommendation for "Comp Time" Policy for Exempt Employees  
Posted: 10/16/2009 06:59am   Revised: 10/16/2009 07:00am  
  

I agree with the philosophy that exempt "employees are paid for the work they perform, not the time it takes them to perform it." So if your efficient exempt employees need less than 40 hours of work each week to get the job done, let them go home early on Fridays or take Fridays off, with no charge to PTO banks. That will reinforce the concept that they are exempt employees or perhaps outside contractors.


#3

Recommendation for "Comp Time" Policy for Exempt Employees  
Posted: 10/16/2009 08:19am  
   (2 ratings)

In my opinion, haivng any kind of company approved or reviewed "policy" or "practice" of comp time is a huge mistake.  It defeats the entire purpose of what being "exempt" means. I know of a few companies who have gotten burned big time($$) by having one.  The big problem is tracking fair use and once you track it, you are in it too deep.  Exempt employees get ample "comp" time from leaving early, to arriving late, to going to doctor's appointments, to long lunches, etc etc.  Good luck with this because sooner or later it will giv eoyu more problems than you think you are solving.


#2

Recommendation for "Comp Time" Policy for Exempt Employees  
Posted: 10/16/2009 08:33am   Revised: 10/16/2009 08:34am  
  

I really don't see any serious problems with a formal policy. In fact, a formal policy will help ensure that all exempt employees are treated fairly and that supervisors and employees understand how comp time will be handled.


Private14572

   
Recommendation for "Comp Time" Policy for Exempt Employees  
Posted: 10/16/2009 09:22am  
   (4 ratings)

I also agree that there should be no formal "comp time" policy for exempt employees.  What makes them exempt employees is that they are not paid by the hour, and not required to track their time. 


Recommendation for "Comp Time" Policy for Exempt Employees  
Posted: 11/29/2012 04:24am  
  

This is an old thread, but one that is now very relevant to me as I've been asked to tackle this same issue.  If someone has a policy in place, could you share your verbiage with me?  Or, if you've had problems after something like this has been put into place, I'd like to know that as well.  Thank you.


Private10790

   
Recommendation for "Comp Time" Policy for Exempt Employees  
Posted: 11/29/2012 10:28am   Revised: 11/29/2012 10:32am  
   (1 rating)

Michelle is quite correct.  While we track everyone's time in order to measure the time spent in various research research projects for internal efficiency studies, that is not germane to exempt pay.  The literal words "comp time" imply that the parties are compensated per the time spent at work and that pay will be adjusted when hours fluctuate... and that concept renders illegitimate any assertion of exempt status.  So beware of treating your exempts same as overtime-elibigle nonexempts.  Here is our formal policy:

TIME RECORDING – EXEMPT EMPLOYEES
Exempt employees will maintain records of time worked as directed.
EXEMPT EMPLOYEES PAY
Normally, exempt employees are paid a fixed salary that covers all time worked. An exempt employee's salary may be reduced for days of absence due to sick leave (before sick leave accrues or after sick leave has been exhausted), personal reasons other than sickness or accident (if the employee has no vacation time available), and incomplete initial and final weeks of work.
An exempt employee's salary will not be reduced due to partial weeks of work due to service as a juror, witness, or in the military. Exempt employees are not eligible for overtime pay.
This salary pay policy is intended to comply with the salary pay requirements of the Federal Fair Labor Standards Act and applicable State laws, and shall be construed in accordance with such laws. Employees are encouraged to direct any questions concerning their salary pay to their supervisor.


#2

Recommendation for "Comp Time" Policy for Exempt Employees  
Posted: 11/29/2012 12:14pm   Revised: 11/29/2012 12:58pm  
  

Q: Do you have a policy for giving exempt employees compensatory time? Specifically, when employees travel for the company on weekends, the company would like to show their appreciation by giving them an additional day of PTO.

A: Instituting a formal compensatory time off policy for exempt employees is legal, but many employers avoid formal policies due to the complications such a policy can create. Employers sometimes avoid formal comp time policies because they may create the expectation that exempt employees work set hours or that certain work is “extra.” Instead, many employers opt to grant additional leave to exempt employees on an individual and discretionary basis, based on exceptional performance.

If your organization wishes to provide comp time to exempt workers in a formal policy, it is best to set out a policy or clear expectations regarding when comp time is earned, how it will be tracked and within what time frame it must be used.

For example:

  • The policy should first limit and define the employees eligible for comp time to those that are exempt from overtime provisions of the FLSA. The policy should specifically state nonexempt positions are entitled to overtime pay and must be compensated for any hours worked over 40 hours in a work week and are not eligible for compensatory time off.
  • State that the employer has no legal requirement or obligation to grant compensatory time off to exempt employees. A supervisor may choose to grant compensatory time off to exempt employees who are required to work in excess of 40 hours per week for special projects or during weekends or any normally scheduled time off. State how compensatory time will be granted (e.g., on an hour-for-hour or other basis).
  • Require supervisory approval of work that qualifies the exempt employee for comp time. Consider requiring recordkeeping of hours worked, use of timesheets, etc., depending on the work environment.
  • Set time periods for use of comp time (i.e., within a year of date which comp time is accrued, within 60, 90 days, etc.)
  • Set limits on when an employee can use comp time (i.e., allowing supervisors to deny comp time leave requests if taking such time will “unduly disrupt" the department's operations.
  • Set limits on the number of hours of comp time an employee can accrue in a set period.

http://compensation.blr.com/Compensation-news/Compensation/Exempt-Employees/Exempt-Employee-Definition-5-Frequently-Asked-Ques/


 
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