[Code of Federal Regulations]
[Title 29, Volume 3]
[Revised as of July 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 29CFR553.20]

[Page 234]
 
                             TITLE 29--LABOR
 
         CHAPTER V--WAGE AND HOUR DIVISION, DEPARTMENT OF LABOR
 
PART 553_APPLICATION OF THE FAIR LABOR STANDARDS ACT TO EMPLOYEES OF 
STATE AND LOCAL GOVERNMENTS--Table of Contents
 
                            Subpart A_General
 
Sec. 553.20  Introduction.

    Section 7 of the FLSA requires that covered, nonexempt employees 
receive not less than one and one-half times their regular rates of pay 
for hours worked in excess of the applicable maximum hours standards. 
However, section 7(o) of the Act provides an element of flexibility to 
State and local government employers and an element of choice to their 
employees or the representatives of their employees regarding 
compensation for statutory overtime hours. The exemption provided by 
this subsection authorizes a public agency which is a State, a political 
subdivision of a State, or an interstate governmental agency, to provide 
compensatory time off (with certain limitations, as provided in Sec. 
553.21) in lieu of monetary overtime compensation that would otherwise 
be required under section 7. Compensatory time received by an employee 
in lieu of cash must be at the rate of not less than one and one-half 
hours of compensatory time for each hour of overtime work, just as the 
monetary rate for overtime is calculated at the rate of not less than 
one and one-half times the regular rate of pay.