The Use of Comp Time in Place of Overtime
Some employers decide to provide employees comp time instead of paying overtime. Under the law, employers are usually not allowed to provide only one hour of comp time for each hour of overtime. Instead, an employer may be able to give compensatory time if the overtime premium is included. This means an employee is entitled to 1 1/2 hours of comp time for each hour of overtime worked, as long as the employee takes the time off during the same pay period as the overtime work. (This is often a misunderstood fact by employers).
If you have questions concerning the use of comp time in lieu of overtime please consult an employment lawyer or contact the Iowa Workforce Development.