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

Compensatory time, also known as "comp time," is a form of paid leave that employers offer employees in lieu of payment for overtime hours worked. Comp time is a way for employers to meet their legal obligation to compensate employees for overtime work without paying out cash. In Florida, employers must give employees at least one and one-half times their regular rate of pay for any hours worked over 40 in a workweek. Paid time off (PTO) is another form of paid leave. PTO is usually a mix of vacation time, sick time, and other personal and family leave days. The difference between PTO and comp time is that PTO is typically earned through accrual over a set amount of hours worked or, in some cases, provided to employees up front each year. PTO is meant to be taken for personal or family-related activities. Compensatory time and PTO are both paid leave options available to employers and employees. However, employers cannot offer comp time in lieu of overtime pay. Compensatory time must be used solely for hours worked in excess of 40 hours in a workweek. PTO, on the other hand, can be used for any personal or family-related activities, and is typically earned through accrual of hours worked. PTO gives employees more flexibility to use their paid leave for a variety of reasons.

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

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