Compensatory time, often referred to as "comp time," is a policy that allows employees to take time off instead of receiving overtime pay for extra hours worked. This arrangement is typically used in workplaces where employees may work beyond their regular hours but do not receive additional monetary compensation. Instead, they earn time off that can be used later. In many cases, compensatory time is governed by labor laws and company policies. It is important for employees to understand the rules surrounding compensatory time to ensure they can effectively manage their work-life balance while complying with employment regulations.