California comp time (also known as compensatory time or compensatory time off) for non exempt employees, for the most part, is illegal. An employer’s idea of “work now, and I‘ll pay you later” or “work late tonight, and I will just let you come in late tomorrow, but no overtime” is in most instances, illegal according to California labor laws.
There are some limited circumstances where an employee may receive compensated time off by substituting overtime with comp time. However, specific steps must be adhered to by the employer. An employer must follow all of these steps to comply with California comp time requirements and preserve the employee’s legal rights. The required steps are as follows:
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The employee must request the compensatory time off instead of payment of overtime in writing. |
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The comp time agreement between the employer and employee must be in writing and clearly describe the substituting of overtime with comp time. |
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The employee must be regularly scheduled to work 40 hours per week. |
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Under California labor laws, the employee’s California comp time must be provided at the same rate as the overtime pay. For example, if you work an extra hour and one half, your California comp time must be an extra hour and one half. If you work over 12 hours, your comp time must be at double time to comply with California overtime laws. |
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There is a 240 hour limit to “store California comp time.” After banking 240 hours of California compensatory time off, employees must be paid at the regular overtime rate. |
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There is no “use it or lose it policy” permitted under California labor laws and your California comp time cannot be forfeited under California overtime laws. |
Who Is Not Entitled to California Comp Time?
Generally, those employees who are exempt from overtime pay and those employees in certain industries such as manufacturing or public housekeeping, who may also be covered under a wage order specific to that industry, are not entitled to California comp time.
California Compensatory Time and Separation of Employment
California employees are entitled to be paid all “stored comp time” upon separation of employment. Any unused comp time must be paid out in the final wages at the appropriate overtime rate, if applicable.
California Labor Attorneys Offer Comp Time Wage Claim Reviews
It is not uncommon for California employers to fail to comply with California comp time laws, whether it is because of ignorance of the actual laws or intentional to help reduce their operating costs. Failure to comply will subject these employers to legal exposure. If you are an employee who has been the victim of illegal comp time practices, or you feel your employer has not met the California comp time requirements, contact one of our California labor law attorneys so your case may be reviewed. Our experienced labor law attorneys offer a free comp time claim evaluation.
