What is the difference between compensatory time and overtime pay?

Compensatory time and overtime pay are two different ways that employees can be compensated for working longer than the standard hours in a workweek. Compensatory time, sometimes referred to as “comp time,” is when an employee earns time off in lieu of receiving overtime pay. This time off must be taken within the same pay period or within the next 26 workweeks. Compensatory time is not required in Louisiana, but if an employer offers it, they must follow the provisions of the Fair Labor Standards Act. Overtime pay refers to the wages an employee receives for working beyond their usual working hours. In Louisiana, employers must pay their employees time-and-a-half for all work hours beyond 40 hours in a single workweek. This means that if an employee works 45 hours in a week, they will receive their regular wage for 40 hours and 1.5 times their regular wage for the remaining 5 hours. Both overtime pay and compensatory time are subject to the laws and regulations set out by the Louisiana Workforce Commission. While some employers may choose to offer compensatory time to their employees, overtime pay is required by law.

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What is the difference between compensatory time and overtime pay?

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