Compensatory Time Off

Also known as comp time, compensatory time off is an optional way of paying employees who work overtime. A company with a compensatory time off policy pays employees in the form of paid time off (PTO) rather than paying time and a half in overtime pay. In other words, an employee may earn paid vacation time instead of overtime pay.
The compensatory time off is usually granted as PTO in relation to the amount of hours worked. Employers should have an accurate, detailed method for recording comp time hours as they’re accrued. Otherwise, the employer could risk being sued if they don’t grant employees the appropriate time off.
Employer can use an HR software to help record this like HRMLabs. Find out more here.