Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

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What is compensatory time, often referred to as "comp time"?

  1. Time taken off for personal days

  2. Time off from work to make up for unpaid overtime

  3. Paid time off for holidays

  4. Time accrued for sick leave

The correct answer is: Time off from work to make up for unpaid overtime

Compensatory time, commonly known as "comp time," refers specifically to time off from work that is granted to employees in compensation for the extra hours they have worked beyond their standard workweek, which would otherwise qualify as unpaid overtime. In many workplaces, especially in the public sector, employees who work more than a certain number of hours are allowed to take time off in lieu of receiving overtime pay. This can help manage labor costs while also providing employees with the flexibility to take time off when they need it without financial penalty. This concept is an important part of labor regulations and helps in ensuring that employees who put in extra hours can still receive a benefit for their additional effort, balancing work-life needs with operational demands.