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.