What are the limits on using compensatory time off in lieu of overtime pay?
If accrued compensatory time off is not used by an FLSA nonexempt employee within 26 pay periods or if the employee transfers to another agency or separates from federal service before the expiration of the 26 pay period time limit, the employee must be paid for the earned compensatory time off at the overtime rate in effect when earned.

An FLSA exempt employee in that situation will either: receive payment for the unused compensatory time off at the overtime rate in effect when earned; or forfeit the unused compensatory time off, unless failure to use the compensatory time off is due to an exigency of the service beyond the employee’s control

2020 Digital Almanac

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