Is it legal to offer voluntary program in lieu of overtime pay?
I have been trying to find this on the DOL website for a while with no luck.
Could a company offer a voluntary program to their employees where for each hour of overtime worked in a pay period the employee could opt to have it put in as paid time off (ie extra vacation and sick days), in lieu of paying the overtime?
I understand that to force an employee to do this would violate the law, however as part of a voluntary program, would it be considered acceptable?
That sounds highly progressive to me. The company is not avoiding paying the money for time worked, but are offering different ways of including it in other guaranteed areas.
Since this is an option, they are not attempting to sidetrack or avoid payment, so I would not see this as any attempt to defraud the employee.
My only question to the company would be to make sure the time earned is a constant rollover and does not expire. What I mean is suppose you earned an extra three days vacation time near the end of your fiscal year. You dont take your vacation since you are planning on using this later. Does this time earned continue to accumulate into the new fiscal year, does it disappear or does accumulated time simply convert to cash in your last paycheck for that year?
Another thought to ask. Is this a constant option? Are you given a choice on each day you work overtime to have it as vacation/sick time or included in your pay? Is this signed up for a quarter or the entire year? If you sign up, what is involved in opting out of the program?
Personally, I think the entire concept is highly progressive and would be a plus for both the employee and the employer. I would just want to see how certain small details would be handled.
Best of luck and I hope this is useful to you
I live in Florida and have a been of a problem with the laws here. Most of them say either reffer to Federal law or nothing if really detailed out for employees. Or there isnt a law for it. If I work overtime and my employer does not want me to have overtime. And tells me I must not have overtime at the end of the week. But when asked to leave earlyer then time to avoid the company having to pay overtime I am refused and told I can only take a longer lunch. So instead of a hour lunch I must take 2 hours. Can they force that upon me. Who decieds what I do with the overtime I have do I or do they? Pls hlp This is a current on going issue would like a reply right away. Thank you.