What are the differences between compensatory time and paid time off?

Compensatory time and paid time off are two different types of paid time off that employers in California are legally required to provide to their workers. The main difference between them is the way the time is earned. Compensatory time is when an employee works additional hours beyond their normal hours and is compensated by their employer with extra hours off rather than with a higher wage rate. This time off does not need to be paid out at the end of the employee’s employment. Paid time off is time off that is given to an employee by their employer which is to be paid out at the end of their employment. This type of time off is generally used for vacation days and paid holidays. Employers must obey specific laws in the state of California regarding wages and the amount of hours an employee can work. For example, employers are required to pay their employees overtime pay for any hours worked over forty in one week. California also requires that employees must receive compensatory time off for any overtime hours worked, with the exception of employees in certain exempt positions. Paid time off is not required by law and is solely at the discretion of the employer. In California, employers must also keep accurate records of both compensatory time and paid time off. The same overtime rules apply to both forms of time off, which means that an employee cannot take more than a certain amount of hours of compensatory time or paid time off consecutively. It is also important to note that paid time off is not required to be paid out when the employee leaves their employer, while compensatory time must be given to the employee in lieu of overtime pay at the end of their employment.

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What are the differences between compensatory time and paid time off?

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