(a) Compensatory time and compensatory time off are interchangeable
terms under the FLSA. Compensatory time off is paid time off the job
which is earned and accrued by an employee in lieu of immediate cash
payment for employment in excess of the statutory hours for which
overtime compensation is required by section 7 of the FLSA.
(b) The Act requires that compensatory time under section 7(o) be earned
at a rate not less than one and one-half hours for each hour of
employment for which overtime compensation is required by section 7 of
the FLSA. Thus, the 480-hour limit on accrued compensatory time
represents not more than 320 hours of actual overtime worked, and the
240-hour limit represents not more than 160 hours of actual overtime
(c) The 480- and 240-hour limits on accrued compensatory time only apply
to overtime hours worked after April 15, 1986. Compensatory time which
an employee has accrued prior to April 15, 1986, is not subject to the
overtime requirements of the FLSA and need not be aggregated with
compensatory time accrued after that date.