A more thorough explanation:

Definition: Comp time is time off from work that an employee can take instead of being paid for overtime already worked. It is also known as compensatory time.

• An employee works 10 hours of overtime in a week and is given 10 hours of comp time to use at a later date instead of being paid for the overtime.
• A nurse works an extra shift and is given comp time to use for a future day off instead of being paid for the extra hours worked.

These examples illustrate how comp time works. Instead of receiving extra pay for working overtime, the employee is given time off to use at a later date. This can be beneficial for employees who value time off more than extra pay.