What is a Compensatory Time-Off Plan?

You may have heard of a compensatory time-off plan before, but you should know the details of this important workplace benefit. Often called comp time, these policies let you adjust your working schedule based on personal or business needs. Not all companies offer them, and federal regulations implemented in late 2016 have changed many of the rules surrounding these plans. For workers that have access to comp time, it can help you achieve work-life balance without sacrificing your career.

How Does a Compensatory Time Policy Benefit Me?

Think about your current employment situation. If you had a routine dentist’s appointment or needed to leave work early to pick up your child or meet the cable technician at your house, would you have to use personal time off to cover your absence? With a comp time policy, you can make up your missed hours later on in the week by staying late or coming in early. This lets you meet your professional obligations without creating extra stress at home. You might also appreciate a compensatory time plan if your job requires unusual hours. After a dinner meeting or late night in the office, you can sleep in the following day and come to work after a leisurely breakfast and cup of coffee. Comp time gives you control of your schedule.

How Do I Know if a Company Offers Comp Time?

As with any benefit, the best way to learn about it is to ask. Comp time is a way for companies to manage their payroll and provide some flexibility to employees. You won’t seem greedy or inappropriate by asking about it during an interview or meeting with your supervisor. In fact, you will come across as well informed and interested in learning more about the company’s culture. “Does this company offer compensatory time off options?” is a great question to ask at the end of an interview, especially if you don’t have other questions.

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Does a Compensatory Time Plan Mean I Won’t Be Paid Overtime?

Most companies use comp time policies to avoid having to pay overtime hours. With the 2016 changes to overtime laws, organizations are more limited in their ability to avoid paying overtime. Before the federal change, you could bank extra hours until your next pay check. If you were paid monthly, you would have several weeks to use your comp time and avoid time-and-a-half costs to your organization. Your employer may have had a policy forcing you to do so. Now, you have until the end of the work week to use your extra time. If you have to work an extra 3 hours on Thursday, you must either come in 3 hours late on Friday, leave 3 hours early on Friday, or receive 3 hours of overtime pay from your company. Ask your supervisor or Human Resources department about the policies that govern overtime pay.

You may have an informal arrangement with your boss to make up missed time already, but it’s always helpful to have a written agreement. With federal changes creating new regulations, now is a great time to talk to your company or prospective employers about the details of their compensatory time-off plan.