Comp time, short for compensatory time, is paid time off given instead of pay for extra hours worked. Someone works a Saturday to get a launch out, and takes a Tuesday off later. It's popular because what people miss after a crunch is rest, not money.
But in the US, comp time has rules, and they depend on who you work for and whether the person is paid hourly. Here's the difference between comp time and overtime, the rules in broad strokes, and how teams use time off in lieu fairly.
Comp time vs overtime, the definitions
Overtime is extra pay for hours worked over 40 in a workweek. Under the federal Fair Labor Standards Act, non-exempt employees get at least time and a half for those hours.
Comp time gives paid time off instead of that extra pay. In the public sector, the FLSA allows it at the same rate: an hour and a half off for each overtime hour.
What US rules say, in broad strokes
Private employers generally can't give non-exempt (hourly) employees comp time instead of overtime pay. Overtime has to be paid. A private employer can adjust hours within the same workweek, like letting someone leave early on Friday after a long Monday, as long as the week doesn't go over 40 hours.
Public employers (federal, state and local government) can offer comp time instead of overtime under the FLSA, with limits on how much can build up.
Exempt employees, which includes most salaried software engineers, aren't owed overtime, so time off after extra hours is a company choice. Many teams give it anyway, and call it comp time or time off in lieu.
Some states add their own rules. This is general information, not legal advice: check with HR before you set up a comp time policy.
How teams use time off in lieu for salaried staff
The most common cases: a weekend spent on a launch, a holiday spent on call, or a night spent on a major incident. A simple rule people understand: one day off for each weekend day or holiday worked, to be used within a month or two.
Keep it simple and visible. Put comp days on the team calendar like any other day off, so they're actually taken and don't quietly disappear.
Make comp time actually happen
Set an expiry
Comp days that never expire never get taken. A month or two is enough.
Write the rule down
Which work earns comp time and how much, so nobody has to negotiate.
Book it right away
Pick the day off while the launch is still fresh, before the next crunch arrives.
Track it on the calendar
A comp day is time off. Treat it like any other, with coverage.
Don't make it a substitute for planning
If people earn comp time every month, the problem is the plan, not the policy.
Check hourly roles
For non-exempt employees, overtime usually has to be paid. Ask HR before offering time instead.
Comp days only countif they actually get taken.
The usual failure isn't the policy, it's that comp days get earned in December and forgotten by February. Put them on the team calendar the moment they're earned. Here's a holiday on-call rotation on a Forgot board. It's live, so try adding a comp day.
Earned and taken in one view
On-call shifts and the days off given back sit on the same rows.
Coverage checked
A comp day is time off, so it shows next to releases and everyone else's leave.
Custom types
Add a “Comp day” type so it's clear why someone is out.
- Who covered which holidays on call
- Drag a comp day onto someone's row
- Shifts on someone's own time off get a warning
- Holidays come from where each person lives
Give time back, and make sure it's taken.
Forgot puts on-call, comp days, vacations and public holidays on one timeline, so the time you give back gets planned like any other day off.
- Custom types like Comp day
- On-call that warns when it lands on time off
- Everyone's time off on one timeline
- Your team sends dates without signing up
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Questions
What is comp time?
Compensatory time: paid time off given instead of extra pay for hours worked beyond the normal schedule.
What's the difference between comp time and overtime?
Overtime is extra pay, at least time and a half under the FLSA for non-exempt employees over 40 hours a week. Comp time is paid time off instead of that pay.
Is comp time legal for private employers?
Generally not as a replacement for overtime pay for non-exempt employees. Private employers can rearrange hours within the same workweek. Public employers can offer comp time under the FLSA. Check your state's rules.
Can salaried employees get comp time?
Yes. Exempt salaried employees aren't owed overtime, so many companies give time off in lieu after weekends, holidays or on-call. It's a company policy, not a legal requirement.