Time off in lieu::Overtime

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Time off in lieu Time off in lieu; compensatory time; or comp time refers to a type of work schedule arrangement that allows (or requires) workers to take time off instead of, or in addition to, receiving overtime pay. A worker may receive overtime pay plus equal time off for each hour worked on certain agreed days, such as bank holidays.

In the United States, such arrangements are currently legal in the public sector but not in the private sector.<ref>See 29 U.S.C. 207(o)</ref>

For example, non-exempt workers must receive at least one and one half times their normal hourly wage for every hour worked beyond 40 hours in a work week. For example, workers who clock 48 hours in one week would receive the pay equivalent to 52 hours of work (40 hours + 8 hours at 1.5 times the normal hourly wage). With comp time, the worker could (or would have to) forgo the 12 hours of overtime pay and instead take 8 paid hours off at some future date.{{ safesubst:#invoke:Unsubst||$N=Clarify |date=__DATE__ |$B= }}{{ safesubst:#invoke:Unsubst||date=__DATE__ |$B= {{#invoke:Category handler|main}}{{#invoke:Category handler|main}}[citation needed] }}

In some other jurisdictions, such as Canada, employers might be required to pay the overtime at the higher rate (e.g. 1.5 times the normal rate), but also be allowed to require time off in lieu at the normal rate. Thus, an employee might work 48 hours in one week, and 32 hours the next week (assuming over 40 hours is overtime), and be paid an extra amount equivalent to 4 hours work (8 multiplied by 0.5).

In Australia, such arrangements both in the private and public sector are common.

In some cases, particularly when employees are represented by a labor union, overtime may be paid at a higher rate than 1.5 times the hourly pay. In some factories, for example, if workers are required to work on a Sunday, they may be paid twice their regular rate, i.e., double time.


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Time off in lieu
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