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Q. An employee worked several hours of overtime last week. Can I offer him compensatory time off, to use in the future, rather than pay him overtime?
A. Currently, unless you are a public-sector employer, the answer is no. Under the Fair Labor Standards Act, employees who are not exempt must be paid overtime pay (one and one-half times their regular pay rate) for all hours worked over 40 in a work week.
That may soon change, however.