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

Compensatory time and paid time off are two different terms used in Massachusetts wage and hour law. Compensatory time, also referred to as “comp time,” is time off given to an employee in lieu of overtime pay. For every hour of overtime worked, the employee can receive one hour of paid time off. Compensatory time is a way for employers to provide benefits to employees without having to pay additional money. Paid time off, or PTO, refers to the vacation and sick leave benefits that employers provide to their employees. PTO may include paid holidays, vacation days, sick days, personal days, or maternity leave. PTO is used by employers to provide employees with time off from work while still being compensated for their time. The main difference between compensatory time and paid time off is the way in which the employee is compensated. With compensatory time, the employee is not paid any extra money for the overtime worked; instead, the employee is given a paid time off in lieu of the overtime. With PTO, the employee is paid for the time taken off work. In general, compensatory time should be given to the employee within 8 days of the overtime worked and must be used within 6 months of when it was given. On the other hand, paid time off is given to employees in advance and can be used at any time. Different employers may have different rules regarding the types of paid time off they provide and how it is used.

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

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