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Compensatory Time Off for Wage Employees (Regardless of FLSA Status)


The Office of Personnel Management has issued interim regulations, retroactively effective to September 23, 1996, on granting prevailing rate (wage) employees compensatory time off in lieu of premium pay.


The amendments to section 1610 of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104-201, September 23, 1996) amended 5 U. S. Code 5543 and revised 5 Code of Federal Regulations 532.504, 550.114, and 551. 531.


A wage employee, including one under a flexible or compressed work schedule, may be approved compensatory time off instead of overtime pay for an equal amount of time spent in irregular or occasional overtime work.

Mandatory compensatory time off is prohibited.

Wage employees may not be directly or indirectly intimidated, threatened, or coerced for the purpose of interfering with their rights to request or not to request compensatory time off.


Once OPM finalizes the interim regulations, MRP's policy statements and procedural guidance (i.e, Directives and Human Resources Desk Guide) will be updated.


General inquiries on the above issue should be directed to the servicing personnel office. Requests for policy interpretations for complex or recurring situations should be directed to N. Kusmenko, Employment and Classification Policy Branch, MRPHR.


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