California’s labor laws rank among the strongest in the United States, and the state’s regulations on compensatory time off are very clear. While other states or federal law may allow employees to choose time off instead of overtime pay, California imposes strict conditions on the use of compensatory time off (also known as “comp time”). Here’s what you need to know about how California handles this issue.
What is compensatory time off?
Compensatory time off, or “comp time,” allows employees to earn paid time off in place of overtime pay. In other jurisdictions, public sector workers may have the option of choosing comp time, but California’s rules are more restrictive. California only permits this option under specific circumstances and conditions.
Is comp time permitted for private employees?
Private sector employees in California cannot substitute compensatory time off for overtime pay. The California Labor Code states that if an employee works more than eight hours in a day or more than 40 hours in a week, the employer must pay overtime wages. Employers cannot replace overtime pay with paid time off, and doing so could violate California’s wage and hour laws.
What about public employees?
Public sector employees in California may receive comp time, but only under certain conditions. The employee must agree to earn comp time in writing before working any overtime hours. The time off must accrue at the same rate as overtime pay—one and a half hours of time off for every hour of overtime worked. Additionally, the law places caps on the amount of comp time an employee can accumulate.
If you work in the private sector and your employer offers compensatory time off instead of overtime pay, you may face an unlawful practice. You have the right to receive overtime pay for any extra hours worked. Public employees should make sure to agree to comp time in writing and confirm that it is calculated correctly. If any discrepancies exist between your hours worked and the time off accrued, you should review your records closely.