Employer tries to trick employees regarding OT

As I’ve mentioned in my prior posts, I work for a rather large worldwide corporation. In this corporation they recently revised their policies regarding overtime.

Previously if you were a salaried employee you were paid X amount regardless of how many hours you put in (OT exempt I do believe).

Well, recently they’ve changed several people to the status of NON-exempt, which in my opinion means that I can now be paid for any overtime (over 40 hrs) per week that I work.

Well, here comes the zinger. Managers and supervisors tend to push or insist that employees should just take the amount of overtime as paid time off. By doing this, the company is not paying the time and ½.

If I’m classified as non-exempt and work over 40 hrs in a week’s time am I or am I not entitled to receive time and ½??

In my opinion the company is trying to force everyone to choose paid time off instead of collecting the cash.

Is this right or wrong? Or should I just stand my ground for the cash option?

Generally (and surprisingly), "comp time" (compensatory time off given instead of overtime pay) is ILLEGAL under federal law.

Under federal law, if you work more than 40 hours in a week, you must be PAID for your overtime at time-and-a-half. This applies to all non-exempt employees in all states.

Employers may give time off during the same week you work extra hours (e.g., work 10 on Monday, work only 6 on Tuesday), but as soon as you cross the "more than 40 hours in a week" threshold, you're entitled to overtime pay.

Comp time is permitted within a single pay period (e.g., you might be able to take time off next week if you work overtime this week), but if it's not in the same week, the comp time must be given at time-and-a-half (e.g., 1.5 hours of time off for every hour of overtime worked).

Most companies don't know this or do it right. Many companies are violating the overtime laws. Call your state labor agency or the federal department of labor if you want to take action.