Q: What are the rules concerning getting paid a lump sum for unused comp time (overtime credit) after retirement? Is there a limit on how many hours you can get paid for? Does the balance of annual leave have any effect on comp time balance?
A: Compensatory time must be used within 26 pay periods. If you retire and have any compensatory time remaining, it will be paid at the hourly overtime rate in effect when you earned it. Such a payment is not affected by any lump sum payment for unused annual leave to which you may be entitled.
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Does this apply to exempt employees as well?
Because of your positional duties and responsibilities and level of decision-making authority, you are exempt from the overtime provisions of the Fair Labor Standards Act (FLSA). You are expected, by most organizations, to work whatever hours are necessary to accomplish the goals of your exempt position. Therefore, it’s unlikely that you would be eligible to receive compensatory time. However, if you did receive such hours, you would be paid for them when you retire.