Cash/Compensatory Clause Samples
The Cash/Compensatory clause defines how compensation or payments are to be made in cash rather than through other means, such as stock or in-kind benefits. Typically, this clause specifies the timing, method, and conditions under which cash payments are provided, often in the context of employee bonuses, severance, or settlement agreements. Its core function is to ensure clarity and certainty regarding the form of payment, thereby reducing disputes and simplifying the administration of compensation obligations.
Cash/Compensatory. Time The employee shall have the option of receiving overtime compensation in cash or in compensatory time off if overtime is required. The employee must indicate at the time of the work effort whether cash or compensatory time is the choice. An employee may accumulate compensatory time to a total not to exceed eighty (80) hours. After the cap is reached, cash payment will be the only option available to the employee until the accrued total is reduced. The Department Head may, at any time, require the employee to use the compensatory time. Assigned compensatory time would be taken on a Monday or Friday with seventy two (72) hours’ notice to the employee. An employee may cash out compensatory time upon approval of the Department Head.