Compensatory Time (Comp Time) Policy

UNDER NO CIRCUMSTANCES WILL COMP DAYS OFF BE GIVEN IN PLACE OF RECEIVING OVERTIME PAY. Since we do not pay a special higher rate of pay for hours worked on recognized holidays, we reward employees with paid time off at the time they choose. If a holiday is worked and it is also at a time when the employee is earning overtime, they will receive the overtime and only the equivalent of 8 hours off at a time in the future.

Drafting Considerations

The following is background commentary for whoever is drafting or reviewing this policy -- not part of the operative policy above, and not something to publish as a rule employees are bound by.

Comp time in lieu of cash overtime pay is prohibited for private-sector employers under the FLSA (29 U.S.C. § 207(o) permits it only for state and local government employers). Non-exempt private-sector employees must always be paid overtime in cash for hours over 40 in a workweek.

General information, not legal advice. Treat this as a drafting starting point, not a finished policy — employment law varies by jurisdiction and changes often, so have a licensed attorney tailor it to your situation before you rely on it.

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