Compensatory or comp time is the practice of employers offering employees time off from work in place of cash payments for overtime. It’s important to note that this is illegal in most situation.
Under the Fair Labor Standards Act, only state or government agencies may legally allow their employees time off in place of wages.
Even then, comp time may be awarded only:
• according to the terms of a collective bargaining unit agreement, or
• if the employer and employee agree to the arrangement before work begins.
David Payab, Esq. from The Law Offices of Payab & Associates can be reached @ (818) 918-5522 or by visiting http://payablaw.com/