What is the difference between compensatory time and overtime pay?

Compensatory time and overtime pay are two different ways of compensating for hours worked beyond the normal work day. Compensatory time, or comp time, is paid time off from regular work hours that is awarded to an employee in lieu of overtime pay. Comp time hours are typically earned at a rate of 1.5 hours for every hour worked over the standard work day. On the other hand, overtime pay is money wages paid to an employee for work performed beyond the usual work day. In Delaware, overtime pay is calculated at 1.5 times the employee’s hourly rate. For example, if an employee works 10 hours in one day and their regular hourly rate is $10, they would receive $150 for those 10 hours of work. Compensatory time is beneficial for employers because it helps them to save money by not having to pay the overtime rate. Comp time can also be more beneficial for employees if they are able to use the hours off when they need. However, it is important for employers to be aware of certain laws that govern compensatory time and overtime pay in order to ensure that they are complying with all applicable regulations.

Related FAQs

What is the impact of minimum wage increases on businesses?
What is the difference between a minimum wage and a living wage?
Are employers allowed to pay tipped and non-tipped employees different wages?
What is the difference between a minimum wage and a prevailing wage?
What are the differences between compensatory time and paid time off?
Are employers required to provide a rest break and/or meal break?
What is the difference between a minimum wage job and a living wage job?
Are employers allowed to ask an employee for medical documentation for an extended absence?
What is the minimum wage for tipped workers?
Are employers allowed to set a different hourly wage for part-time and full-time employees?

What is the difference between compensatory time and overtime pay?

Related FAQs

Related Blog Posts