Certified Payroll Professional Practice Exam

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When can employees qualify for compensatory time off in lieu of overtime pay?

  1. It is only available to exempt employees

  2. Exclusively for non-exempt employees

  3. OT must be irregular or occasional

  4. Compensatory time off is mandatory for all employees

The correct answer is: OT must be irregular or occasional

Employees can qualify for compensatory time off in lieu of overtime pay when the overtime work is irregular or occasional. This means that compensatory time off is not a blanket option for all employees and is typically granted under specific circumstances where the overtime work does not follow a regular or predictable schedule. Options A, B, and D are not accurate because compensatory time off is not limited to exempt employees, non-exempt employees, or mandatory for all employees.

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