The Town of Grafton used to have comp time for the road crew (hourly employees) instead of overtime.  It did not work well.  If an employee leaves you have to pay their comp time at their rate of pay when they leave, not when they earned it.  This will throw your budget off!  Also, you cannot tell an employee when they can and cannot use their comp time.  Comp time did not work well when we had employees earning comp time at a rapid rate (such as 15 hours or more a week in the winter!)  We ended our comp time policy over a period of three years by reducing the amount of comp time by 1/3 each year until at the end of three years we were on a complete overtime policy.  We gave the employees one year to use up their comp time and whatever wasn't taken at the end of the year was paid at their current hourly rate.  We ended up paying an average of 280 hours per employee at the end of that year.    We had to budget $7400 (a lot of $ for Grafton) to pay off comp time.  I would not recommend a comp time policy for any town with employees that might have the potential to accrue a lot of hours.
I work part-time hourly as the admin. asst. for Grafton and frequently have projects and board meetings that add on to my 24 hours/week.  If I work a few hours extra one week I take a the same amount of hours off the next or as soon as I can.  I don't rack up comp time as quickly as the road crew so it works well.
I am not familiar with salaried employees earning comp time.  The idea of a salaried employee is that all of the potential working "extra" is factored into what their annual pay is.  Usually salaried employees don't have a set vacation policy or sick time policy - you are paying an employee to do a certain job, not to be there certain hours.  If that employee can take 4 weeks off a year and still get his job done, great, but there may be times when they can only take 2 weeks off a year.  Again, this is factored into their salary.
Lisa Mancuso
Grafton Admin. Asst.