Comp time confusion — Not everyone gets to use it
Under the federal Fair Labor Standards Act (FLSA), employers must pay nonexempt (hourly) employees overtime at 1.5 times their regular rate of pay for all hours worked over 40 in a workweek. Special rules, however, apply to public employees. Employers may allow them to take compensatory (comp) time instead of paying them cash overtime pay. But comp time isn’t for everyone.
Defining public employees
Public employees include those who work for state and local governments. State and local government employers consist of those entities that the FLSA defines as public agencies.
A “public agency" includes the U.S. government; the government of a state or political subdivision thereof; any agency of the U.S., a state, or a political subdivision of a state; or any interstate governmental agency.
Public universities or colleges may also qualify as a "public agency" under the FLSA. A college or university is a public agency under the FLSA if it is a political subdivision of a state. This means:
- The state directly created the entity, or
- Individuals administering the entity are responsible to public officials or the general electorate.
The public agency definition does not, however, extend to private companies that perform work that public employees normally do.
Calculating comp time
Under certain situations, employers may “pay” these public employees in comp time off, at a rate of not less than one and one-half hours for each overtime hour worked, instead of paying them cash overtime pay.
Comp time is when employees work extra hours and then take those hours off later — but at a rate of 1.5 times the hours worked. If, for example, Joe Employee worked four extra hours one workweek, the employer would allow him to take six hours (1.5 x 4) of paid time off later.
Employees who work in public safety such as police, firefighters, and other emergency response personnel, as well as those who work in seasonal activities, may accrue up to 480 hours of comp time. All other state and local government nonexempt employees, such as those in public universities or colleges may accrue up to 240 hours of comp time.
Employers with employees in private higher education institutions may not pay employees comp time instead of overtime pay.
Employers must allow employees to use their comp time on the date requested unless doing so would unduly disrupt agency operations.
Key to remember: Employers in the private sector may not allow employees to take comp time instead of paying cash overtime. Employers in the public sector, however, may.