Section 7(o)
provides as follows:
(o)(1)
Employees of a public agency which is a State, a political subdivision
of a State, or an interstate governmental agency may receive, in
accordance with this subsection and in lieu of overtime compensation,
compensatory time off at a rate not less than one and one-half hours for
each hour of employment for which overtime compensation is required by
this section.
(2) A public
agency may provide compensatory time under paragraph (1) only—
(A) Pursuant
to—
(i) Applicable
provisions of a collective bargaining agreement, memorandum of
understanding, or any other agreement between the public agency and
representatives of such employees; or
(ii) In the
case of employees not covered by subclause (i), an agreement or
understanding arrived at between the employer and employee before the
performance of the work; and
(B) If the
employee has not accrued compensatory time in excess of the limit
applicable to the employee prescribed by paragraph (3).
In the case of
employees described in clause (A)(ii) hired prior to April 15, 1986, the
regular practice in effect on April 15, 1986, with respect to
compensatory time off for such employees in lieu of the receipt of
overtime compensation, shall constitute an agreement or understanding
under such clause (A)(ii). Except as provided in the previous sentence,
the provision of compensatory time off to such employees for hours
worked after April 14, 1986, shall be in accordance with this
subsection.
(3)(A) If the
work of an employee for which compensatory time may be provided included
work in a public safety activity, an emergency response activity, or a
seasonal activity, the employee engaged in such work may accrue not more
than 480 hours of compensatory time for hours worked after April 15,
1986. If such work was any other work, the employee engaged in such work
may accrue not more than 240 hours of compensatory time for hours worked
after April 15, 1986. Any such employee who, after April 15, 1986, has
accrued 480 or 240 hours, as the case may be, of compensatory time off
shall, for additional overtime hours of work, be paid overtime
compensation.
(B) If
compensation is paid to an employee for accrued compensatory time off,
such compensation shall be paid at the regular rate earned by the
employee at the time the employee receives such payment.
(4) An
employee who has accrued compensatory time off authorized to be provided
under paragraph (1) shall, upon termination of employment, be paid for
the unused compensatory time at a rate of compensation not less than--
(A) The
average regular rate received by such employee during the last 3 years
of the employee's employment, or
(B) The final regular rate received by such employee, whichever is
higher.
(5) An
employee of a public agency which is a State, political subdivision of a
State, or an interstate governmental agency--
(A) Who has
accrued compensatory time off authorized to be provided under paragraph
(1), and
(B) Who has requested the use of such compensatory time, shall be
permitted by the employee's employer to use such time within a
reasonable period after making the request if the use of the
compensatory time does not unduly disrupt the operations of the public
agency.
(6) For
purposes of this subsection--
(A) The term
overtime compensation means the compensation required by subsection (a),
and
(B) The terms compensatory time and compensatory time off means
hours during which an employee is not working, which are not counted as
hours worked during the applicable workweek or other work period for
purposes of overtime compensation, and for which the employee is
compensated at the employee's regular rate.
[52 FR 2032, Jan.
16, 1987; 52 FR 2648, Jan. 23, 1987]
