What is the difference between compensatory time and overtime pay?

Compensatory time and overtime pay are two forms of wages that can be offered to employees in Mississippi. Both are required to be paid by employers according to Wage and Hour Law. Compensatory time, also called “comp time”, is when an employer gives an employee their due wages in the form of extra time off, rather than money. This happens when an employer allows an employee to work extra hours or weekends. For example, if an employee worked 8 hours on a Saturday, they could receive 8 hours of paid time off from work at another time. Overtime pay is when an employee is paid in the form of wage compensation for work done beyond their regular hours. Under the Wage and Hour Law, employers must pay workers at least one and a half times their regular wage rate for hours worked above 40 hours a week. For example, if an employee works 45 hours the employer must pay the employee for the extra 5 hours at a rate of 1.5 times their regular wage rate. Compensatory time and overtime pay are both required wage payment methods according to Wage and Hour Law in Mississippi. The difference is that compensatory time is given in the form of extra time off work, while overtime pay is given in the form of wage compensation.

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What is the difference between compensatory time and overtime pay?

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