What’s a Better Solution to Wage Theft: Backpay or Comp Time?

Congress is considering a bill that could have a huge impact on federal labor law. The legislation in question would offer an employee the option of taking comp time instead of overtime pay for the extra hours they work. Keep reading to find out if this is a good solution to the issues with wage theft and lack of overtime pay. Then reach out to The Law Offices of Larry H. Parker at 800-333-0000 if you have had an issue with overtime disputes.

Current Overtime Laws

The way current overtime laws work is that anyone who does not have managerial or administrative job duties, and anyone who does not make at least $23,660 a year, gets time-and-a-half pay if they work more than 40 hours in a week. In certain states, such as California, overtime pay kicks in when a worker clocks more than eight hours per day.

The New Bill Seems Like a Good Idea – On the Surface

The Bill in question is the Working Families Flexibility Act. On the surface, it may seem like a great option, but some are worried that changing the way overtime is applied could hurt employees by not allowing them to get the compensation they are used to for their extra hours.

The Arguments for and Against

Those who support the Bill – mainly Republicans – point to the fact that they believe employees would have more options. They believe that more options would make for a better overall situation for workers. They say to think about parents of young kids, people caring for their elderly parents, or military families in which one or more parents are deployed – those folks need more time to take care of their homes and responsibilities.

On the other side, those against the Bill – mainly Democrats – believe that the change would not actually provide employees with more flexibility. They say the Bill is actually written to provide employers with more flexibility and would negatively impact the way overtime compensation actually happens.

Then Facts About the Bill

Opinions aside, the Bill does give flexibility to companies by offering them the choice of defraying the cost of paying for overtime. The way it works now, they must pay overtime during the pay period in which the worker completed the extra hours. The Bill would allow companies to pay those who chose comp time at their regular rate for the hours they take off. As you can see, this would mean that the employee would not, in fact, get the time and a half – though they would get hours off in the future.

If you have ever been the victim of an overtime dispute, wage and hour disputes, or other employment law issues, then we strongly urge you to contact The Law Offices of Larry H. Parker at 800-333-0000 for a free legal consultation.