Can we give employees comp time in lieu of pay for the overtime they work?
Not if your organization is in the private sector. Public employers may compensate employees who work overtime with comp time, but that must be done at time and a half, i.e., one and a half hours of comp time for each overtime hour worked, and the employer needs to advise employees in advance of the comp time policy (the best way is to have each employee sign a written wage agreement that includes the comp time policy). Q: My employee told me I need to give her extra overtime pay based on the commission pay she earned for the past month. Is that true, and if so, how do I calculate the overtime pay? She is paid an hourly rate. A: Commission and bonus payments must be included in the regular rate of pay for overtime purposes. Assuming that the employee has already been paid for the overtime based upon her hourly rate, she just needs to be paid an additional amount of overtime pay based upon the commission earnings. If it was a monthly commission, multiply it by twelve and then divide the
