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Can compensatory time off or “comp time” be substituted for overtime pay?

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Can compensatory time off or “comp time” be substituted for overtime pay?

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A. Only in the public sector. Pursuant to the 1985 Amendments to the FLSA, state and local governmental entities may award comp time instead of paying overtime. However, there are certain stipulations in the use of comp time. First, comp time generally must be awarded at a time and one-half rate for hours worked in excess of 40 per week. Second, law enforcement, fire protection,emergency services and seasonal employees can accrue 480 hours of comp time before any overtime payment must be made. All other public employees can accrue up to 240 hours of comp time before overtime must be paid.

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