Regularly compensated staff members are sometimes granted time off in lieu of monetary overtime pay. This practice, often viewed as a flexible work arrangement, allows employees to accumulate time off credits for extra hours worked. For example, a staff member working ten extra hours might receive ten hours of paid time off instead of overtime pay.
Offering time off instead of overtime pay can benefit both employers and staff. For businesses, it can help manage overtime costs, particularly during peak periods. For individuals, it provides increased flexibility and control over their work-life balance, enabling them to take time off when needed rather than receiving additional wages. Historically, this practice has been more prevalent in certain sectors, such as government and non-profit organizations, and its legal permissibility and implementation varies by jurisdiction and employment laws.