Compensatory time, also known as “comp time,” is a system the place eligible workers accrue day without work as a substitute of receiving time beyond regulation pay. Usually provided to non-exempt public sector workers, it permits them to financial institution earned time for working past their commonplace hours. For instance, an worker working 4 further hours may obtain 4 hours of comp time as a substitute of 4 hours of time beyond regulation pay. This accrued time can later be used for paid day without work, topic to employer approval.
This apply affords varied benefits. It offers workers with better scheduling flexibility, permitting them to handle private wants or prolong holidays with out impacting their common paychecks. For employers, particularly authorities companies, it may well assist handle budgetary constraints associated to time beyond regulation prices. Traditionally, comp time has performed a major position in balancing worker work-life steadiness and authorities fiscal accountability. Nevertheless, its applicability to personal sector salaried workers is usually restricted, typically ruled by the Truthful Labor Requirements Act (FLSA) and topic to particular exemptions and necessities.