"Giving comp time" refers to the practice of giving "compensatory" time off to nonexempt employees who work extra hours instead of paying them time and a half. Under federal law, the practice is illegal.

Of course, there is nothing wrong with giving comp time to an exempt employee.

You may also give comp time to an employee who doesn't work 40 hours in a week, even with the extra time.

 

Archibald Mealing stays late three days in a row to help you finish an important project. To thank him for his efforts, you give him the next week off. Archibald normally works 25 hours a week but the extra time meant that he worked 35 hours for the week. You have not violated federal law because he's not entitled to overtime until he works 40 hours in a workweek.