“Can I offer comp time instead of paying overtime?”

It’s a common employer question.

The answer is yes—but with strict rules. Private-sector employers may only offer comp time during the same workweek when overtime is earned. And comp time must be accrued at 1.5 hours for every 1 hour of overtime worked. Anything outside of that is not legal under the Fair Labor Standards Act. Missteps in this area can lead to wage disputes and penalties. If you’re offering comp time as a perk, make sure you’re also in compliance. A quick review of your policies could save your business from significant risk.