Whether you are an employer or an employee, it is essential you understand the rules around compensation for hours worked.
Companies often require employees to do hours above and beyond their usual quota. Many employees are eager to grasp the opportunity this provides, be it overtime pay or time off in lieu.
Time off in lieu is legal when paid correctly
California employers who ask employees to work overtime are permitted to give them time off in lieu instead of overtime pay. Yet, just as with overtime pay, they must give it at the appropriate rate.
Note that some employers and employees are exempt from these rules, but this is how it works for the majority. There are two tiers of overtime and time off in lieu:
An employee must receive overtime pay at one and a half times their hourly rate, or one and a half hours off in lieu for:
- “All hours worked in excess of eight hours up to and including 12 hours in any workday”
- “The first eight hours worked on the seventh consecutive day of work in a workweek”
They must receive overtime pay at twice their hourly rate or two hours off in lieu for:
- “All hours worked in excess of 12 hours in any workday”
- “All hours worked in excess of eight on the seventh consecutive day of work in a workweek”
If you have any doubts, regardless of which side of the fence you are on, it is wise to seek help to learn more. Employers who breach overtime laws could find themselves in legal problems. Employees who fail to understand these laws could lose out on earnings.