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

Compensatory time and paid time off are two ways to compensate employees for the hours they work. Compensatory time, also known as comp time, is when an employer pays an employee an additional hour of paid time off for every hour worked that is above the standard 40 hours a week. This means that after an employee has worked over 40 hours in a week, they are given an extra hour off for each of those extra hours worked. Comp time is typically used in lieu of overtime pay. Paid time off, or PTO, is a lump sum of paid time that an employee can use for vacation, sick days, and other types of time off. This time is typically accrued based on the amount of hours the employee has worked and can be used at the employee’s discretion. Employees are usually given a fixed amount of PTO they can use in a given year, though it is possible for employers to rollover unused PTO to the next year. Under Washington law, compensatory time is not allowed for private employers, so paid time off is the only option for them to compensate their employees for extra hours worked. For public employers, it is possible to offer compensatory time, as long as it is offered on a voluntary basis and on the same terms as private employers offer paid time off.

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

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