What is the difference between compensatory time and overtime pay?

Compensatory time and overtime pay are two different types of wages that employers must pay their employees in the state of Arizona. Compensatory time is also known as “comp time” and is paid time off from work given to an employee for working more than 40 hours in one week. In Arizona, employers must offer compensatory time off in lieu of overtime pay if the employee and the employer both agree to it. It must be mutually agreed upon and the employee cannot be forced to take compensatory time in lieu of overtime pay. Overtime pay is wages that employees must receive for working more than 40 hours in one week. It is usually paid at a rate of one and a half times the regular rate of pay. For example, if an employee earns $10/hour, they must be paid $15/hour for any hours worked over 40 in one week. So, the difference between compensatory time and overtime pay is that compensatory time is simply paid time off from work while overtime pay is wages paid to an employee for working more than 40 hours in one week. In Arizona, employers must offer overtime pay unless the employee and employer agree to offer compensatory time instead.

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What is the difference between compensatory time and overtime pay?

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