Checklist: Additional Rules for CTO -- California Labor Code

Other rules apply to CTO, depending on the labor code of a particular state. For example, some of the other requirements for CTO under California’s current version of Labor Code Section 204.3 are:

- The employee requests CTO, in writing, in lieu of overtime. 

- The employee is regularly scheduled to work no less than 40 hours in a workweek. 

- There is a written agreement for CTO before the work is performed. 

- Accrued CTO cannot exceed 240 hours. 

- If compensation is paid for CTO, it must be paid at the regular rate applicable at the time it is paid. 

- Accrued CTO must be paid out when the employee terminates employment. 

- Employees must be permitted to use CTO within a reasonable period after making the request to use it. 

- If requested by the employee, the employer must pay overtime compensation in lieu of CTO for any CTO that has accrued for at least two pay periods.