What is the difference between overtime and compensatory time for non-exempt employees?
Overtime is earned when non-exempt employees physically work more than 40 hours in a workweek (Sunday through Saturday). Compensatory time is earned when non-exempt employees log more than 40 hours for the workweek, but did not physically work over 40 hours in the workweek. For example, non-exempt employee is paid 8 hours of holiday pay for Monday, then works 10 hours each day, Thursday through Friday. Total hours logged for the week equal 48, but the employee only physically worked 40 hours. 8 hours are compensatory hours and may be compensated by either giving 8 hours of compensatory leave or by paying the employee for 8 hours at straight time.
