Compensatory Time

Compensatory time, also known as 'comp time,' is a practice where employees may receive paid time off instead of overtime pay for working extra hours beyond the standard workweek.

Example #1

For instance, if an employee works 45 hours in a week, instead of receiving overtime pay, they could bank 5 hours of compensatory time off to use in the future.

Example #2

Another example is if an employee works on a weekend, they might be compensated with comp time to take as paid time off on a different day.

Misuse

Misuse of compensatory time can occur when employers coerce employees into accepting time off instead of overtime pay, violating Fair Labor Standards Act (FLSA) regulations. This could be detrimental to employees who rely on overtime pay to meet financial needs.

Benefits

One benefit of compensatory time is that it grants employees additional paid time off, allowing for better work-life balance and flexibility in managing personal commitments.

Conclusion

It is crucial to ensure that compensatory time is offered fairly and voluntarily, in compliance with labor laws, to protect employees' rights and prevent exploitation.

Related Terms

Fair Labor Standards Act (FLSA)Overtime Pay