Sample Policy - Compensatory Time

Reference Number: 

Sample Compensatory Time Policy:

Compensatory time may be given to those employees who work overtime as provided in the section on “Overtime” and with whom the county has a prior agreement or understanding that the employee will accept compensatory time in lieu of cash payment for overtime.  Employees are encouraged to use their accrued compensatory time, and the county will make every effort to grant reasonable requests for the use of compensatory time when sufficient advance notice is given and the workplace is not unduly disrupted.  The maximum number of compensatory time hours that an employee may accrue is                 . Any employee who has reached this maximum shall not work any additional overtime until the employee’s accrued compensatory time has fallen below the maximum allowed, unless the employee receives advance written authorization and receives payment in cash for any such additional overtime. The county reserves the right at any time to pay an employee in cash for any or all accrued compensatory time and/or to require the employee to use accumulated compensatory time.


Compensatory Time Agreement

The federal wage and hour laws require a prior agreement or understanding before compensatory time may be given to employees in lieu of cash payment for overtime. This can be accomplished through the county’s policies, but some counties may wish to have a signed agreement with employees who receive compensatory time. The following is an example of a compensatory time agreement, although there are other acceptable methods of evidencing an agreement. The employer should give one copy to the employee and place the other copy in the employee’s personnel file.


In accordance with the Fair Labor Standards Act,                 County has a policy of granting employees compensatory time off in lieu of compensation for time worked in excess of 40 hours in a workweek (or other permissible schedules for law enforcement, firefighters, and certain other employees). A copy of this policy is on file in the office of the County Clerk. I understand that compensatory time will be granted at time and one half for all time worked in excess of 40 hours (or other permissible work schedules). I further understand that accrued compensatory time may be used in accordance with county policy and the applicable laws, rules and regulations of the U. S. Department of Labor. I voluntarily and knowingly agree to accept compensatory time off in lieu of cash compensation for overtime work and to the use of accrued compensatory time off in accordance with the county’s policy and the laws, rules and regulations of the U. S. Department of Labor.

Employee signature


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