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  1. #1
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    Sep 2016
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    Default Can An Employer Give an Employee Time Off Instead of Overtime Pay

    A manager at work is being given the option of taking vacation time instead of getting overtime pay. This opportunity is not being given to other workers, including other managers. Is that permissible?

  2. #2
    Join Date
    Sep 2005
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    Default Re: Can An Employer Give an Employee Time Off Instead of Overtime Pay

    Probably so. A manager will typically be subject to classification as an exempt employee, in which case an employer's decision of how to treat overtime -- or whether to provide any compensation for overtime above and beyond the employee's salary -- is subject to negotiation between the employee and the employer. There is no law that mandates that all managers be given the same wage or compensation package.

    If the manager is not an exempt employee -- that is, if his compensation were so low that he cannot be classified as exemt and paid a salary instead of an hourly wage -- then the practice would not be permissible. If there is cause to suspect unlawful discrimination (race, gender, color, religion, sex, etc.) then that might be something to discuss with a plaintiff-side employment lawyer.

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