@Jaxk – @JLeslie brings up an important point. If comp time is used, then all extra hours the employee works are for, at that time, “free.” They have a right to pay…BUT every hour after 40 is payed at some undetermined later date. Since scheduling is based on business needs, unless there is a built in right for the employees to take the comp time at their discretion, then management and ownership will dictate whether it can be taken.
Of course, all the comp time is paid out at the end of the year, it seems…so they can’t lose it if unused. However, the major problem there is that it allows, in essence, the employer to hold the unpaid wages for a period without being responsible for paying out any accrued interest or earnings on that money…at least that’s how it seems.
In the end, therefore, it is a benefit to the employer. I think there’s good potential for this idea, as it DOES investigate potential benefits of creating flexibility in the mandatory overtime structure. However, it doesn’t seem to account for the fact that overtime wages are earned AT THE TIME the work is done. In order for it to work, I think that it requires the creation of some form of escrow account where earned overtime is placed. Unfortunately, this creates a burden on employer to track the funds, as they aren’t fungible (e.g., $100 placed in the account at the beginning of the year by employee A is worth more than $100 placed in the account at the end of the year by employee B). Employers, however, would be able to assess whether the increase cost is worth it themselves…and the legislation would simply enable them to do so.