Compensatory time, often referred to as comp time, is a system where employees receive time off instead of monetary overtime pay for extra hours worked beyond their standard schedule. This arrangement allows employers to offer flexibility while managing labor costs and is primarily applicable to non-exempt employees under the Fair Labor Standards Act (FLSA). It's essential to understand how this practice interacts with the classification of employees, particularly between exempt and non-exempt categories.
congrats on reading the definition of Compensatory Time. now let's actually learn it.