Yesterday afternoon, my employer told all employees that there would be no more overtime pay, only comp time. Neither I nor anyone else on my team is salaried.
I live in Arizona and as far as I can tell, Arizona does not have an overtime law
, so we should be covered under federal law. But I can't find any explanations of overtime pay versus comp time here.
So, my questions are pretty simple:
1) Is it legal to give employees comp time in lieu of overtime?
2) Would that comp time be accrued like overtime pay, that is, one and a half hours for every hour worked over 40?
3) If it is not legal, what are the specific laws and penalties covering it?