Virtual TimeClock Support Blog

Tracking Comp Time

November 29, 2012

What is comp time?
Comp (compensatory) time is an alternate way of rewarding overtime work. Instead of paying an hourly employee time-and-a-half for working extra hours, employers would give them an hour and a half of time off for each hour of overtime worked. The FLSA (Fair Labor Standards Act) places heavy restrictions on the use of comp time to avoid paying overtime. There are some exemptions for public sector employees like police officers and firefighters, and federal and state government employees. In most cases the practice is illegal for private employers. Each state's law can be different regarding comp time so it's best to check with the agency that handles wage and labor standards for your state.

Can I track comp time with Virtual TimeClock?
The answer is "Yes" but it does involve some manual processes. Virtual TimeClock software already segregates hours worked on employee timecards based on the overtime rules assigned to each employee. Rather than paying the employee these hours at the premium rate, you can create a new leave category called "Comp Time" and add them as an annual leave award. You do need to add the hours at the comp time rate rather than hour-for-hour. For example, for every extra hour worked the employee would earn one and one-half hours of paid time off.

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