Comp Time for Overtime? Not So Fast

Employers often ask: Can we offer “comp time” instead of overtime pay? If you’re a private-sector employer, the answer is yes—but with conditions:

• It must be used in the same workweek

• It must be accrued at 1.5 hours for every 1 hour of overtime

Offering comp time instead of pay outside of these guidelines violates the Fair Labor Standards Act. Check your practices to make sure you’re in compliance—and avoid costly penalties.