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

Compensatory time and paid time off are two types of leave options available to employees in Maryland. Compensatory time, also known as ‘comp time’, is a type of leave that employers may offer their employees under certain circumstances. When an employer gives an employee compensatory time, the employee is allowed to take the leave at a later date, in the form of additional time off from work. The amount of time taken is usually equal to the amount of time they worked, and the employee is not paid for the additional hours taken. Paid time off, or PTO, is a type of leave that employees can take and receive payment for. Employees are entitled to a certain amount of PTO, which can include vacation time, holidays, sick days, and other types of leave. This leave is given to employees as an incentive for good performance, and they are paid for the hours taken. The main difference between compensatory time and paid time off is that compensatory time is not paid, whereas paid time off is paid. Additionally, paid time off is usually given as an incentive for good performance, whereas compensatory time is usually given as a reward for working overtime hours.

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