Compensatory time off
Compensatory time off:
Compensatory time off (comp time) is a form of compensation where employers provide employees with paid time off in lieu of overtime pay for hours worked beyond the regular workweek. Compensatory time off provides employees with paid time off in exchange for working overtime hours, and its use and administration are subject to various federal and state regulations.
Eligibility for Compensatory time off in the US:
Eligibility for comp time depends on various factors including federal and state laws, exemption status (exempt or nonexempt), and whether the employee works in the public or private sector.
Nonexempt employees are entitled to overtime pay at one and a half times their regular rate of pay for hours worked over 40 in a workweek. Comp time for nonexempt employees in the private sector is generally not allowed by federal law, although state laws may vary.
Exempt employees are not entitled to overtime pay under federal law, so private sector employers can offer comp time to exempt employees if they choose.
Government employees may be eligible for comp time under certain conditions, such as those in fire protection, law enforcement, and emergency response roles.
Difference Between Exempt and Nonexempt Employees:
Nonexempt employees are typically paid hourly and are entitled to overtime pay for hours worked over 40 in a workweek.
Exempt employees are usually paid a salary and are not eligible for overtime pay under federal law.
How Compensatory time off Works:
Compensatory time must be provided at a rate of one and a half hours of comp time for each hour of overtime worked.
Employers must track employees' overtime hours and provide compensatory time off at the same rate as overtime pay.
Compensatory time off must be taken within a specified period and cannot be carried over.
Employees may request the use of comp time in writing, and employers must grant such requests within a reasonable time frame.
Compensatory Time FAQs:
Tracking Comp Time: Employers must maintain records of employees' work hours and overtime.
Usage of Comp Time: Some states have regulations regarding the use of comp time. Employees should check with their state's department of labor for guidelines.
Calculation of Comp Time: Comp time is calculated by multiplying the number of overtime hours worked by 1.5.
Payout of Comp Time: Comp time cannot be paid out in cash except in certain circumstances, such as termination of employment.
Rollover of Comp Time: Comp time generally does not roll over and must be used within a specified period.