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Compensatory time-off plan

What is compensatory time-off plan?


Compensatory time-off plan is the practice of giving employees paid time off as compensation for their overtime work, if they have worked for more than 40 hours per week. Compensatory time-off leaves are provided in order to reward an employee for the extra effort that they put in for the development of the organization

Compensatory time-off plan


How to calculate compensatory time-off?


To calculate compensatory time-off, employers should first refer to their organization’s time tracking system, like a time sheet, spreadsheet, or other system, so that they know how many hours an employee has earned. 


Most non-exempt public employees get time and a half for overtime hours. Employers may use the same guidelines to grant compensatory time-off. For example, if an employee works one hour of overtime, they should get 1.5 hour of compensatory time-off. 


Can a salaried employee get compensatory time-off?


Non-exempt employees who work for the public sector may qualify for compensatory time off. Qualified, salaried employs can earn compensatory time-off for working over 40 hours per week and should gain the time-off just as an hourly employee would. 


In the private sector, salaried workplaces do not offer compensatory time-off packages. Managers in these settings may choose to informally offer compensatory time-off to their employees. This can be granted a s reward for hard work or for special cases. For instance, if a team of salaried employees spends many late nights at the office to prepare for the launch of a new product, the manager might spontaneously tell everyone to take the day off after completion of the project.

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