“They won’t pay me for overtime but tell me to use it as vacation days later. Is this illegal?”
Client O worked as an office employee in a private company. During project deadlines, they regularly worked over 10 hours of overtime per week. However, instead of paying overtime wages, the company used a “Compensatory Time Off (Comp Time)” system. The employer promised, “For every hour of overtime, we will let you take paid time off later.” Client O was usually too busy to actually use these days and felt they were losing out compared to getting paid in cash, so they sought advice from Song Law Firm.
Song Law Firm’s Legal Analysis: “Comp Time” is Generally Illegal in the Private Sector.
Unlike government/public sector employees, it is generally illegal for private-sector employers to offer “Comp Time” in lieu of paying overtime wages.
Under federal labor law, if a non-exempt employee works more than 40 hours in a week, they must be paid in cash at 1.5 times their regular rate within that same pay period. Even if the employer promises “time-and-a-half off later,” or even if the employee agreed to it, this practice is legally invalid and constitutes wage theft.
The Result: Converting Accumulated Comp Time into Cash Overtime Pay
We corrected the wage exploitation hidden behind the company’s seemingly generous “vacation policy.”
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Result 1: Invalidated all of Client O’s accumulated, unused “Comp Time.”
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Result 2: Converted all those hours back into the 1.5x Overtime Cash Wages that should have been paid originally, recovering the full amount.
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Result 3: Compelled the company to completely abolish its illegal comp time system and implement a lawful overtime payment structure.
Your time should be compensated with fair wages, not IOU vacation days. Song Law Firm protects employees’ rights from illegal corporate practices.
[Contact Us]
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KakaoTalk Channel: Song Law Firm
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Phone: 201-461-0031
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Email: mail@songlawfirm.com
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Website: www.songlawfirm.com
Disclaimer: Prior results do not guarantee a similar outcome. This content is based on general legal scenarios and past successes, and does not constitute legal advice. Please consult with an attorney regarding your specific situation.
