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News > Companies
It's time versus money
July 26, 1996: 8:40 p.m. ET

House to debate bill that lets employers offer time off instead of overtime pay
From Correspondent Irv Chapman
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NEW YORK (CNNfn) - For more than half a century, employers have been required to pay workers in most positions overtime if they work more than a certain number of hours in a given week.
     Although many employees would just as well have compensatory time off instead of overtime pay, employers were never legally required to offer that option.
     That may change soon. The U.S. House of Representatives Friday agreed to take up a bill next week that would make comp time a legal option.
     Among those that could benefit from the change is Brian Spencer, an air conditioner repairman who lives in Chatsworth, Calif.
     His employer, Noam Sharf Repairs, pays time and a half for overtime, even though Spencer might sometimes prefer having time off to relax.
     The bill presently before Congress would allow all workers to take unpaid compensatory time off instead of extra pay. Workers would receive 90 minutes in comp time for every hour of overtime worked.
     U.S. Rep. Cass Ballenger, a North Carolina Republican, said many workers feel the chance to have extra time off is as important as earning the extra money.
     "On the first day of school, a mom might want to take off. In my particular part of the country, bird hunters will often say, 'I'd like the first week of November off to go bird hunting.' Time is sometimes more important than the money that you get," he said.
     Under the House bill, a worker would have to tell the company in writing that he's willing to take the time off. There are provisions protecting workers from pressure tactics.
     Some labor leaders, like Peggy Taylor of the AFL-CIO, say that although the proposal might sound attractive, companies would use it as a maneuver to save money. (129K WAV) or (129K AIFF)
     Both sides insist they have the interest of workers at heart.
     In a poll taken for supporters of the bill, three of four workers said they wanted to be able to choose getting time off.
     A poll taken for the AFL-CIO showed half of the workers believe their employer would force them to take time off instead of money.
     In the end, the poll that counts will be the vote of Congress, which right now is a tossup.Back to top

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.