Time Off in Lieu (TOIL): What It Is & How It Works
Time off in lieu — TOIL, sometimes called comp time — is paid time off given instead of overtime pay. Here's how it works and the US rules.
What is time off in lieu?
Time off in lieu (TOIL) is when an employee who works extra hours takes equivalent paid time off later, instead of being paid overtime for those hours. For example, an employee who works 3 extra hours one week takes 3 hours off another day.
Is comp time legal in the US?
This is the key catch: under the FLSA, private-sector employers generally cannot give non-exempt employees comp time instead of overtime pay — overtime must be paid in wages at 1.5×. Comp time (TOIL) is mainly allowed for public-sector (government) employees. Exempt salaried employees aren't owed overtime, so flexible time off can be offered to them by policy.
Tracking it correctly
If you use TOIL where it's permitted, track the extra hours worked and the time taken off precisely so balances stay accurate and you don't accidentally underpay overtime. A time clock that records exact hours makes this clean.
FAQ
Is time off in lieu the same as overtime?
No — TOIL is paid time off given instead of overtime pay. In the US private sector, non-exempt employees generally must be paid overtime in wages, not comp time.
Can private companies offer comp time instead of overtime?
Generally no for non-exempt employees under the FLSA — overtime must be paid. Comp time is mostly a public-sector option.
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