What is the difference between compensatory time and overtime pay?

Compensatory time and overtime pay are two different forms of wage and hour law in California. Compensatory time, also known as "comp time," is paid time off given to employees in lieu of overtime pay. The amount of comp time that can be given is equivalent to the overtime hours worked and the comp time must be used within a certain time frame. Overtime pay, on the other hand, is extra pay given to employees who work more than the standard 40 hours per week. Overtime pay must be calculated at 1.5 times the employee’s regular wage for each hour worked beyond the 40-hour work week. The key difference between compensatory time and overtime pay comes down to how the employee is compensated for working extra hours. While comp time is an alternate form of wage and hour compensation, overtime pay is strictly extra pay given to employees who work more hours than their regular work week.

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What is the difference between compensatory time and overtime pay?

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