By written agreement, an employee may take time off in place of being paid for overtime already worked, with a separate agreement for each pay period's overtime. The agreement must state the overtime hours and when worked, that time off is agreed instead of pay, and that the employer must, on request at any time, pay untaken overtime at the rate applicable when worked in the next pay period after the request. Time off equals the overtime hours (one hour off per overtime hour) and must be taken within 6 months at agreed times; otherwise the employer must pay it at the overtime rate in the next pay period after the 6 months, or on termination. The employer must keep each agreement as an employee record and must not pressure the employee. Email or other electronic exchanges can form the agreement; Schedule J is an optional template.
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