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What is the difference between overtime and compensatory time?

Compensatory overtime time
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What is the difference between overtime and compensatory time?

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Nonexempt employees are entitled to earn overtime. However, upon mutual agreement between the employee and the supervisor, a nonexempt employee may receive compensatory time in lieu of overtime. Both overtime and compensatory time accrues at the rate of 1 ½ for each one hour of overtime/compensatory time worked.

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