FLSA · public-agency compensatory time · 29 U.S.C. § 207(o)
FLSA 7(o) compensatory time
29 U.S.C. § 207(o) / 29 CFR 553.20–.28: a public agency may give not less than 1.5 hours of time off per overtime hour instead of cash — only with a CBA or agreement before the work. Accrual cap 240 hours (480 public safety / emergency / seasonal). Over the cap → cash 1.5×. Classic $20 × five 10h, bank 0 → $800 cash + 15h accrued vs /overtime/ $1,100. At the 240h cap → $1,100 cash. Termination cashes out unused bank at the greater of the 3-year average regular rate or the final regular rate. Not 7(k). Not § 7(f) Belo. Not private-sector.
How 7(o) pays
Section 7(a) requires cash 1.5× after 40. Section 7(o) is the public-agency exception: if a CBA or agreement is in place before the work, the agency may credit compensatory time off at not less than one and one-half hours for each overtime hour instead of paying cash that week (29 U.S.C. § 207(o)(1)–(2); 29 CFR 553.20–.21). Private employers cannot use § 7(o).
Classic $20 × five 10-hour days. 50 hours → 10 overtime hours. Empty bank, 240-hour cap: 10 × 1.5 = 15 hours accrued; cash is 40 × $20 = $800 versus $1,100 on /overtime/. A 35-hour week is still $700 with nothing accrued. At the 240-hour cap there is no room: the same 50-hour week is cash $1,100. Bank 237 (3 hours of room): 2 overtime hours become 3h off + 8 overtime hours cash $240 → $1,040, bank 240.
480-hour public-safety cap. Fire, law enforcement, emergency response, and seasonal activity use a 480-hour cap (553.22 / 207(o)(3)(A)). A 240-hour bank that is already at the general cap still accrues 15 hours (bank 255) on the classic week.
Gates off → cash. Uncheck public agency or uncheck the agreement: the week pays like /overtime/ ($1,100), zero accrued. Missing the agreement is 207(o)(2).
Termination. Unused compensatory time is paid at the greater of the average regular rate for the last three years of employment or the final regular rate (§ 207(o)(4) / 553.27). Forty hours at $20 with a 10-hour bank and a $25 three-year average → $1,050 ($800 + $250), bank 0.
$20 · five 10h · bank 0 → $800 cash + 15h accrued (FLSA cash $1,100).
$20 · five 7h (35h) → $700, 0 accrued.
$20 · five 10h · bank 240 → $1,100 cash, 0 accrued.
$20 · five 10h · bank 237 → $1,040 + 3h (bank 240).
Public-safety 480 cap · bank 240 · five 10h → $800 + 15h (bank 255).
40h · bank 10 · terminate @ $25 3-yr avg → $1,050.
Sources
- 29 U.S.C. § 207(o) — public-agency compensatory time (Cornell LII, HTTP 200)
- 29 CFR § 553.20 — statutory provisions (Cornell LII, HTTP 200)
- 29 CFR § 553.21 — statutory provisions (Cornell LII, HTTP 200)
- 29 CFR § 553.22 — 240 / 480 hour accrual caps (Cornell LII, HTTP 200)
- 29 CFR § 553.27 — payments for unused compensatory time (Cornell LII, HTTP 200)
FAQ
How does public-agency comp time pay?
1.5 hours of time off per overtime hour instead of cash, with a 240-hour cap (480 public safety). Classic $20 × five 10h, bank 0 → $800 + 15h vs /overtime/ $1,100.
Same as /overtime/ or Belo?
No. /overtime/ always pays cash 1.5× after 40. /flsa-7f-belo/ is a private-sector weekly guaranty even under 40. Here the classic week is cash $800 plus a 15-hour bank unless the cap or a gate forces cash.
Same as 7(k)?
No. /flsa-7k/ changes the overtime threshold for public-agency fire and police work periods (212/171). This page still uses weekly 40 and banks 1.5h off per OT hour.
Private employer?
§ 7(o) is State / political subdivision / interstate only. Uncheck the public-agency box and the week pays cash like /overtime/.
Who is covered?
Non-exempt public-agency employees with a compensatory-time agreement or CBA made before the work. This page does not decide 7(k) work-period thresholds or exemption status.