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Code of Federal Regulations Pertaining to ESA

Title 29  



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




Subpart A  


29 CFR 553.20 - Introduction.

  • Section Number: 553.20
  • Section Name: 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.
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