Legal Definitions - compensatory time

COMP TIME stands for Compensatory Time.

Compensatory time, often referred to as "comp time," is a system where employees receive paid time off instead of overtime pay for extra hours worked beyond their standard workweek. This arrangement is typically found in the public sector (government agencies at federal, state, and local levels) and is governed by specific labor laws, such as the Fair Labor Standards Act (FLSA) in the United States. Instead of receiving a higher hourly wage for overtime, employees accrue hours that they can later use as paid leave.

• Example 1: City Public Works Department

  A severe winter storm unexpectedly hits a city, requiring municipal public works employees to work an additional 15 hours beyond their regular 40-hour week to clear roads and respond to emergencies. Instead of receiving overtime pay at time-and-a-half for these extra hours, the city offers them 15 hours of compensatory time. This means the employees can take 15 hours of paid leave at a later date, effectively getting time off in exchange for their extra work during the storm.

  How this illustrates the term: The city employee is not paid extra wages for the overtime hours but instead accrues an equivalent amount of paid time off to be used in the future, which is the core concept of compensatory time.

• Example 2: State Park Ranger

  A state park ranger is scheduled to work a special event over a holiday weekend, which requires them to work 10 hours more than their usual schedule. Under the state's employment policy, public sector employees are eligible for compensatory time for such extra hours. The ranger chooses to accrue 10 hours of compensatory time rather than receiving overtime pay. They can then use these 10 hours to take a long weekend later in the month, enjoying paid time off earned from their extra work during the holiday event.

  How this illustrates the term: The ranger's additional hours are compensated with future paid leave, not immediate monetary overtime, demonstrating compensatory time in a state government context.

• Example 3: Federal Agency Analyst

  An analyst at a federal environmental protection agency is working on a critical report with a tight deadline. To meet the deadline, they work an extra 8 hours over two evenings. Per federal regulations, the analyst is eligible to earn compensatory time for these additional hours. They opt to bank these 8 hours as compensatory time. A few weeks later, they use these 8 hours to leave work early on a Friday, without it impacting their regular pay or leave balance, because they earned that time through their earlier overtime work.

  How this illustrates the term: This example shows a federal employee earning and utilizing compensatory time, highlighting its application in the federal government for extra hours worked on a specific project, allowing for future paid absence.