Time Off

What is Comp Time?

Compensatory time, or 'comp time', is paid time off given to a non-exempt employee instead of overtime pay for hours worked over 40 in a workweek. For example, working 42 hours and getting 3 hours of future time off instead of 3 hours of overtime pay.

Rules for Public vs. Private

  • 1Public Sector (Gov): Allows comp time at a rate of 1.5 hours off for every overtime hour worked.
  • 2Private Sector: Generally illegal to substitute comp time for overtime pay for non-exempt employees.
  • 3Exempt Employees: Legal to offer hour-for-hour comp time as a discretionary bonus.

A Major Legal Pitfall

Private employers often mistakenly offer comp time to be flexible, but this violates the FLSA. Non-exempt employees *must* be paid overtime wages for the pay period in which the overtime occurred.

Enforcing Overtime Policies

ClockIt automatically flags overtime hours to ensure they are paid out correctly, preventing accidental 'comp time' arrangements that could lead to lawsuits.

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Frequently Asked Questions

Is comp time legal in the private sector?
For non-exempt (hourly) employees, no. They must be paid overtime wages. For exempt (salaried) employees, yes, it is legal but not required.
How is comp time calculated?
Where legal (public sector), it is calculated at 1.5 times the overtime hours worked. So 2 hours of overtime = 3 hours of comp time.
Can I bank comp time?
Public sector employees can bank up to 240 (or sometimes 480) hours of comp time. If not used, it must eventually be paid out.
Can I force employees to take comp time?
In the public sector, yes, employers can typically require employees to use their accrued comp time.
What if an employee prefers time off over money?
Private employers cannot comply with this request for non-exempt staff. The FLSA mandates monetary payment for overtime.

Related Terms

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