Comp time
Comp time is paid time off non-federal public agencies may grant instead of cash overtime, at least 1.5 hours per overtime hour.
- LAW
- FLSA §7(o), 29 U.S.C. §207(o)
- BOUNDARY
- State, local, and interstate government agencies
- FORMULA
- At least 1.5 hours per overtime hour
- WATCH FOR
- Private employers banking non-exempt overtime as time off
Under the Fair Labor Standards ActFLSA. The Fair Labor Standards Act (FLSA) is the federal law setting minimum-wage, overtime, recordkeeping, and youth employment standards for covered employment.Click to open the term, you generally pay overtime in cash. A state, local, or interstate government agency may grant compensatory time off, or comp time, instead. It takes an agreement before the work, with the employees’ representative, or with each employee if they have none. Private employers generally cannot offer comp time, even at the employee’s request. Comp time an employee takes is paid at the regular rate and does not count as hours worked toward overtime.
How is comp time earned and capped?
Comp time accrues at no less than 1.5 hours for each overtime hour worked. An agreement may also mix time and cash, if the total stays at time and one-half. One comp hour plus half the regular hourly rate in cash, per overtime hour, qualifies. Once an employee reaches the cap, you pay further overtime in cash. Federal government agencies follow their own comp time rules, not section 7(o).
| EMPLOYEE GROUP | COMP TIME CAP | REACHED AFTER |
|---|---|---|
| Work regularly involving public safety, emergency response, or seasonal activity | 480 hours | 320 overtime hours, if all banked at 1.5 |
| All other public agency employees | 240 hours | 160 overtime hours, if all banked at 1.5 |
What is comp time worth when you pay it out?
You may pay out accrued comp time at any time, and you must pay any unused balance when employment ends. The rate depends on when you pay. At termination, a final stretch of employment shorter than 3 years is averaged over the rates in effect during it.
| WHEN YOU PAY IT | RATE PER COMP TIME HOUR |
|---|---|
| During employment | The regular rate when you make the payment |
| At termination | At least the higher of the final regular rate or the average regular rate over the last 3 years |
Why can private employers not give comp time?
Private-sector overtime is owed in wages for the workweekWorkweek (FLSA). A workweek under the Fair Labor Standards Act is a fixed, regularly recurring period of 168 consecutive hours used to compute overtime.Click to open the term it is earned. Paying comp time instead exposes you to back wages, liquidated damages, and penalties. The overtime payOvertime pay. Overtime pay is 1.5 times the regular rate, owed under the FLSA for each hour a non-exempt employee works over 40 in a workweek.Click to open the term requirement cannot be waived by agreement between you and the employee. Generally, each workweek stands alone, with no averaging across weeks. You can still shift hours within a week, such as ten Monday and six Friday, if the total stays within 40. Some state overtime laws give more protection than the FLSA, so check each state.
Frequently asked
- Fair Labor Standards Act, 29 U.S.C. §207 (Maximum hours)
- 29 CFR Part 553, Application of the Fair Labor Standards Act to Employees of State and Local Governments
- U.S. Department of Labor, Fact Sheet #7: State and Local Governments Under the Fair Labor Standards Act (FLSA)
- U.S. Department of Labor, FLSA Overtime Calculator Advisor for Nonexempt Employees
General information, not legal or tax advice. Apply current federal and state rules with qualified guidance.