compensatory time

compensatory time definition - business

compensatory time

Time off given in place of overtime pay. Compensatory time is generally awarded at a rate of 1.5 hours for each hour worked beyond 40 during any workweek. Under this system, an employee who worked 44 hours would be awarded 6 hours (4 hours of overtime × 1.5) of compensatory time. Also called comp time.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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