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Exempt Employee Comp Time Off Policy




Purpose

It is the policy of [Company Name] to permit exempt employees who work more hours than regularly scheduled to receive compensatory (comp) time off on a pro-rata basis.

The provisions of the Fair Labor Standards Act (FLSA) established a test to determine overtime exemption applied to all positions within [Company Name]. Positions that do not meet the exempt test standard are classified as nonexempt. Nonexempt positions are entitled to overtime pay and must be compensated for any hours worked over 40 hours in a workweek and are not eligible to earn comp time.

Granting Comp Time

Comp time is granted to exempt positions. There is no legal requirement or obligation of [Company Name] to grant comp time to exempt employees. A supervisor may choose to grant comp time to exempt employees who are required to work in excess of 40 hours per week for special projects or during weekends or any normally scheduled time off. Comp time will be granted on an hour-for-hour basis.

The department manager who signs the timesheet is authorized to grant comp time off to exempt employees only. The manager's approval of the employee's timesheet will constitute the granting of the employee's comp time. All employees should record the appropriate time worked and time taken on the timesheet.

Using Comp Time

An employee who has accrued comp time and requests use of the time must be permitted to use the time off within a reasonable period after making the request. Managers may deny the request if the use of comp time will unduly disrupt the department's operations. Managers can require an employee to use comp time off to control excessive accrual.

All comp time earned by exempt employees in any workweek must be taken during the two-month period following the end of the workweek during which the comp time was earned. Comp time accrued is subject to an accrual limitation of 40 hours. Employees cannot accrue compensatory hours in excess of 40 in a two-month period. 

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