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Compensatory Time Off

Compensatory Time for Irregular or Occasional Overtime Work: Irregular or occasional overtime is overtime which is worked in the same week in which it is authorized and is payable at the employee's overtime rate. At supervisors/managers discretion, a FLSA exempt employee with a rate of basic pay in excess of the maximum for GS-10 may be compensated for irregular or occasional overtime work by an equal amount of compensatory time off.

Any FLSA NON-exempt employee and any FLSA exempt employee earning less than the maximum for GS-10 may elect compensatory time if presented a choice, but cannot be required to take it in lieu of overtime pay.

  • Timeframes for Use of Compensatory Time: On March 15, 2007, the Office of Personnel Management (OPM) issued final regulations setting timeframes for the use of compensatory time off earned in lieu of irregular or occasional overtime worked. Under these regulations, compensatory time must be used no later than 26 pay periods after the pay period in which it was earned and reported on the time and attendance (T&A) report.
  • When Unused Compensatory Time Hours MUST be Paid: An employee who is FLSA NON-exempt must receive payment for unused compensatory time hours if the employee: (1) fails to use the compensatory time off within the required 26 pay period or the 3-year timeframes; or (2) transfers to another agency or separates from Federal service before the expiration of the 26 pay period or the 3-year timeframes.

Both FLSA NON-exempt and exempt employees, must receive payment for unused compensatory time hours if they separate from federal service or are placed in LWOP status: (1) to perform service in the uniformed services (as defined under 38 U.S.C. 4303 and § 353.102); or (2) due to an on-the-job injury with entitlement to injury compensation (under 5 U.S.C. Chapter 81).

  • When Unused Compensatory Time Hours MAY be Paid: FLSA-exempt employees who forfeit unused compensatory time hours once the required timeframe is reached may request a payment if they meet certain criteria. The criteria is outlined in the sample memorandum to request compensatory time payment (see references).