Rather than paying employees time and a half in overtime pay, a company which has a comp time policy gives paid time off from work, for the equivilent amount of time to the extra hours worked.
Comp time must be paid at the same rate as overtime pay - one and one-half hours of compensatory time for each hour worked.
Under the Fair Labor Standards Act (FLSA) regulations, private sector employers can only give comp time if the time off is used n the same pay period the overtime occurred.
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Also Known As: compensatory time, comp time off