Definition
Compensatory leave banks overtime hours as future time off instead of cash OT pay — FLSA limits private employer comp time in most cases.
Overtime · [FLSA](/glossary/flsa/)

7 min · 2026-07-02
Compensatory leave (comp time) is time off granted instead of overtime pay — largely restricted in private sector; public sector field crews may use comp time under specific rules.

Compensatory leave banks overtime hours as future time off instead of cash OT pay — FLSA limits private employer comp time in most cases.
Overtime · [FLSA](/glossary/flsa/)
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