[Request for Opinion as to the Proper Method To Process Army Compensatory Time by Its Civilian Employees]

The Army requested an opinion as to the proper method to be used in redesigning its standard civilian payroll system to process the earning and use of compensatory time by its civilian employees. Regulations preclude an employee from receiving overtime pay during any pay period in an amount that would cause the employee's aggregate pay rate to exceed the maximum rate for that grade classification. GAO noted that, since compensatory time merely takes the place of monetary premium pay for irregular or occasional overtime work, compensatory time may not exceed the number of hours for which the employee may receive overtime pay. Accordingly, GAO held that the gross compensatory time earned, rather than the net amount of compensatory time earned and used, should be used to make the required computation.