Updated: July 2025

Comp time, short for “compensatory time off,” is an arrangement where the employer gives an employee paid time off instead of paying them overtime wages for extra hours worked.

1. The Core Concept (Time in Lieu of Pay):

   1. Instead of getting paid extra money for working more than your regular hours, you get extra paid time off to use later. It’s like putting “time in the bank.”

2. Example Scenarios when Comp Time is not available:

   1. Employee did not physically work over their 40 hours

   2. Any other forms of time off (sick, vacation, personal leave) were taken during the week (employee would be paid their hourly rate for additional hours)

   3. Holiday falls within the same work week (employee would be paid hourly rate for additional hours)

3. Important Deadlines: Comp time must be used by the following dates:

   1. Earned between July 1st and November 1st must be used by December 31st. You will not be able to accumulate any additional comp time in the month of December.  Any unused time will be paid on the last payroll of December, and your comp time bank will be reset to zero.

   2. Earned between January 1st and May 1st must be used by June 30th.  You will not be able to accumulate any additional comp time in the month of June.  Any unused time will be paid on the 1st payroll in June, and your comp time bank will be reset to zero.