Makeup time and compensatory time are both ways for employees to make up for missed work hours. However, there are key differences between the two. Makeup time is paid, while compensatory time is not. Additionally, makeup time must be taken within the same workweek, while compensatory time can be taken at a later date.

Employers and employees should understand the differences between makeup time and compensatory time so that they can make informed decisions about how to best use these options.

In this blog, we will discuss what compensatory time and makeup time are and how they are different, and what are their compliance requirements.

What is compensatory time?

Compensatory time, or “comp time,” refers to when employees receive time off instead of extra pay for working overtime. Overtime is when an employee gets paid extra for working more than their usual 40 hours per week.

What is makeup time?

The concept of make-up time for employees entitles them to recover any lost work hours during their regular work schedule. Sometimes employees have to miss work due to personal or unexpected reasons like medical appointments, family emergencies, or unforeseen events. Labor laws often provide make-up time policies that allow employees to make up missed work hours without losing pay.

How is make-up time different from comp time?

1. Circumstances:

• Make-up time is extra time given in the same week to compensate for missed work hours due to personal or unexpected reasons.
• Comp time is a form of compensation for employees who work beyond their regular schedule, providing them with time off to offset the extra hours worked.

2. Purpose:

• The make-up time allows employees to recover lost time.
• Comp time is a type of paid time off that employees can accumulate for future use.

3. Agreement:

• Make-up time requires a prearranged agreement between the employee and the employer.
• Comp time is mutually agreed upon by both employers and employees.

4. Compensation Basis:

• Make-up time is usually paid on an hour-per-hour basis.
• Compensation time is accrued by working overtime hours and may have a previously arranged conversion rate. (e.g., 1.5 or 2 hours of comp time for each hour of overtime worked).

5. Time Limitations:

• Make-up time is often constrained by specific time limits or conditions specified by the company’s policy.
• Employees can earn overtime hours and use comp time as per company policy, but there’s a maximum cap of 240 hours for accumulation.

6. Usage:

• Make-up time allows you to make up for missed work hours within a certain time period.
• Compensation time is the term used for paid time off that an employee can accumulate instead of receiving overtime pay.

Knowing these differences helps employers and employees use make-up time and comp time properly, following labor laws and promoting a fair and effective workplace.

Key takeaway:

There are two methods that employees can utilize to juggle their work schedules: make-up time and comp time. With these tactics, workers can better manage their workloads and maintain a healthy work-life balance. While they may appear similar, make-up time is used to make up for missed work hours, while comp time is used to accrue extra time off.

It is important for employees to understand their company’s policies and consult with HR to ensure they are following all legal requirements. To learn more about overtime and related issues check out the website of Compliance Prime.