Compensatory time-off plan

What is compensatory time-off plan?

The meaning of compensatory time-off plan can be termed as 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. 

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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?

In the meaning of Compensatory time-off plan we have learnt of it as the practice of giving employees paid time off that can be used in the future - if they worked in excess of 40 per week but can salaried employees 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 as a 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.