Payroll Services Letter 05-07.1: Compensatory Time
Date: April 17, 2005 (Revised May, 2008)
Subject: Compensatory Time
Reference: PS05-07.1, Subject: Compensatory Time dated April 17, 2005. PS05-07.1 supersedes PS05-07. Please replace that letter with this one.
This letter describes the policy regarding the use of Compensatory Time.
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Compensatory time is time off with pay in lieu of overtime pay for irregular or occasional overtime work, as permitted by your OPDIV internal policy and flexible work schedule programs.
Employees are required to use all accumulated compensatory time within 26 pay periods of accrual or the time will be converted to overtime pay. After the 26th pay period, unused compensatory time will be automatically converted to overtime pay at the rate at which it was earned, and will be included with the biweekly salary payment. The amount of the overtime pay will be displayed in the Current Earnings Section of the Leave and Earnings Statement (LES). Any remaining compensatory hours accrued will be displayed in the Leave Section of the LES.
The DFAS Defense Civilian Pay System (DCPS) will not make separate payments for compensatory time.
For further assistance or for questions regarding the information in this letter, please contact your Payroll Customer Service Team.