Labor Law in Illinois: Compensatory Time Off in Lieu of Overtime Pay?

I've been doing a little online research, but it's still a bit fuzzy. If an employer will not pay overtime to non-exempt, non-government employees (time and a half over 40 hours worked in a week), but offers compensatory time instead, shouldn't that time be given at time and a half, as well?

What about so-called "non-profit" employers, like churches?

Is "comp" time even legal?

Per Section 7 of the Fair Labor Standards Act and Title 29 of the Code of Federal Regulations, Part 553, the only employers who can pay compensatory time off in lieu of overtime wages are state and local government entities. All other employers must pay overtime in the form of wages. OT must be paid at time and one-half an employee's regular rate of pay for all hours actually worked in excess of 40 in any one work week.

The key here is "actually worked." Some employers will give comp time off at hour-for-hour for other reasons, like, maybe they had you work on a holiday but then gave you a day's worth of "comp time" in the same week to offset the holiday worked. As long as you didn't actually work more than 40 hours in a week (no matter how many hours your employer paid you for), paying comp time at your straight time rate is OK. Once you go over 40 hours for the work week, though, then you have to be paid your OT in wages at the time and a half rate.

Even government entities that are allowed to pay for overtime in comp time off in lieu of wages, still have to compute that comp time at the time and a half rate. Example: I work 41 hours this week. My employer pays me for 40, and gives me 1.5 hours of paid comp time....

Check out the US Department of Labor's Wage Hour Division. They can be reached at www.dol.gov, or at 1-800-4US-WAGE. Hope this helps!

Hmmm...you ask a difficult question and there really is not a clear answer. Yes, there are circumstances where it is perfectly legal and does not have to be paid at "time and a half". There are also circumstances where it is completely illegal. There is a HUGE grey area in between. I suggest that you consult an attorney in your state who specializes in Labor and Employment Law. I could give you a better answer if you gave more facts.

Try the sites below, make sure to change the state.