Compensatory off is a time off entitled to an employee for working on paid holiday or week off defined by the company. It has to be availed by the employee in the given period of time only. There are also laws defined for availing compensatory off and payments if the employee works on statutory holidays. Companies with a compensatory off policy pay the employees in the form of paid time off (PTO).
According to the laws, employees cannot get more than 240 hours comp time. So, the employer must pay the employees for the overtime worked. If an employee works overtime and has not used their comp off time the employee gets paid for the overtime worked.
Laws may vary from state to state but the compensatory time off is also dependent on the type of employment. The non-exempt employees are not allowed for compensatory time off, they are to be paid on the basis of traditional overtime methods.
Non- exempt employees working for the public sectors are allowed for compensatory time off.
The standard rules say that the employee must be paid according to the time-and-half basis. For example, If an employee works for an hour the employee must be paid for 1.5 hours.
Employees have to make a formal request in order to comp off their overtime. On the other hand, the employer can deny the overtime based on a valid situation.
