Ace the Certified Payroll Pro Test 2025 – Payroll Masters, Your Time to Shine!

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How are public sector agencies required to compensate overtime hours under FLSA?

With double pay for each overtime hour

Not required to compensate overtime

With an hour of compensatory time for each overtime hour

Public sector agencies are required to compensate overtime hours under the Fair Labor Standards Act (FLSA) with an hour of compensatory time for each overtime hour worked. This is in accordance with the guidelines set forth in the FLSA for public sector employees. Compensatory time off can be granted to public sector employees in lieu of monetary compensation for overtime hours worked, ensuring fair treatment in terms of compensating employees for their extra work hours.

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With half an hour of compensatory time for each overtime hour

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