Can My Employer Give Me Comp Time Instead of Overtime Pay? — In Plain Words

This page is general information only. It is not legal advice.

What this page covers

This page covers federal rules only. It is based on two fact sheets from the U.S. Department of Labor, Wage and Hour Division.

The two fact sheets are kept separate on this page. One section gives what Fact Sheet #7 says. A different section gives what Fact Sheet #27 says. The two sheets are not combined into one rule.

This page does not decide any one person's case. Only the employer or the U.S. Department of Labor can decide a real case.

What Fact Sheet #7 says — State and Local Governments Under the FLSA

Fact Sheet #7 is titled “State and Local Governments Under the Fair Labor Standards Act (FLSA).” The sheet says it provides general information concerning the application of the FLSA to State and local government employees.

Fact Sheet #7 gives this meaning for “public agency.” State and local government employers consist of those entities that are defined as public agencies by the FLSA. “Public Agency” is defined to mean the Government of the United States; the government of a State or political subdivision thereof; any agency of the United States, a State, or a political subdivision of a State; or any interstate governmental agency.

Fact Sheet #7 also states this limit on that meaning: The public agency definition does not extend to private companies that are engaged in work activities normally performed by public employees.

Fact Sheet #7 has a part headed “Compensatory Time.” It states: Under certain prescribed conditions, employees of State or local government agencies may receive compensatory time off, at a rate of not less than one and one-half hours for each overtime hour worked, instead of cash overtime pay.

Fact Sheet #7 states the accrual caps this way: Law enforcement, fire protection, and emergency response personnel and employees engaged in seasonal activities may accrue up to 480 hours of comp time; all other state and local government employees may accrue up to 240 hours.

Fact Sheet #7 also states: An employee must be permitted to use compensatory time on the date requested unless doing so would “unduly disrupt” the operations of the agency.

What Fact Sheet #27 says — New Businesses Under the FLSA

Fact Sheet #27 is titled “New Businesses Under The Fair Labor Standards Act (FLSA).” The sheet says it is directed to new businesses covered by the provisions of the FLSA.

In its “Requirements” part, Fact Sheet #27 states: Employees who are covered by the FLSA are entitled to be paid at least the Federal minimum wage as well as time and one-half their regular rates of pay for all hours worked over 40 in a workweek.

Fact Sheet #27 also has a part headed “Typical Problems.” That part begins: There are common problems and misconceptions which Wage and Hour investigations frequently disclose.

One item in that list in Fact Sheet #27 is: “Granting compensatory time off in lieu of overtime pay.”

This page prints that list item as Fact Sheet #27 prints it, and adds nothing more about it.

Wage and Hour Division contact block, as printed on the fact sheets

Wage and Hour Division
An agency within the U.S. Department of Labor
200 Constitution Ave NW
Washington, DC 20210
1-866-4-US-WAGE
1-866-487-9243
www.dol.gov

This page is general information only. It is not legal advice.