Compensatory time (comp time) and Compensatory time-off are terms that can be exchanged with each other. Under
the FLSA (Fair Labor Standards Act) they define the same thing, namely the paid time off the job which is due to
the employee for employment in excess of the statutory hours.
"...the terms "compensatory time" and "compensatory time off" mean hours during which
an employee is not working, which are not counted as hours worked during the applicable workweek or other
period for purposes of overtime compensation..."
The minimum wage
is $7.25 per hour
and for more than 40 hours in a week without receiving at least one and
of their regular pay rate for the overtime hours.
"Section 7 of the FLSA requires that covered, nonexempt employees receive not less than one and one-half
times their regular rates of pay for hours worked in excess of the applicable maximum hours standards"
There are some employees exempted from minimum wage and/or overtime pay if they receive a salary and make more
than $684 per week. The most common workers for whom the employer is not obliged to pay overtime are in the
- Commissioned sales employees
- Computer professionals
- Drivers, driver's helpers, loaders and mechanics
- Salesmen, partsmen and mechanics
- Seasonal and recreational establishments
- Executive, administrative, professional and outside sales employees
Compensatory time in Private sector
Noteworthy that for the majority of private-sector businesses (including private-sector nonprofit agencies)
compensatory time (comp time) it is illegal.
In the private sector compensatory time is allowed but not required for exempt employees. As they are not
eligible for overtime pay, it is up to the employer to offer any compensatory time in exchange for hours worked
Even if in certain situations the employees would prefer this, it is not legal to compensate non-exempt
employees, eligible for overtime pay, with compensatory time instead of overtime pay.
Compensatory time in Public sector
The public sector employees, under certain circumstances, receive compensatory time (comp time). Some of the
conditions that need to be met are:
- between the employer and the employee must be an agreement in this regard before the extra hours.
- the profession of the employee should be non-exempt, that is, not to fall into the categories included
- the employee must work on a salary base, not to be an hourly employee