Does a municipal employer have to
offer compensatory time in lieu of overtime to employees and,
conversely, does a municipal employee have to agree to accept comp time
in lieu of overtime?
No. The Fair Labor Standards Act (FLSA)
gives local governments additional flexibility that private employers do
not have by giving local governments the option of using compensatory
time instead of paying overtime. However, there are certain requirements
that must be met with regard to the use of comp time. First, both the
employer and the employee must agree that compensatory time may be
substituted for overtime pay although a local government can require the
acceptance of compensatory time as a condition of employment. Second,
compensatory time, like overtime, must be awarded at time-and-a-half for
actual hours worked in excess of 40 in a week.