Usually means: Provides payment for services rendered.
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We found 11 dictionaries that define the word compensates:

General (9 matching dictionaries)
  1. compensates: Merriam-Webster
  2. compensates: Collins English Dictionary
  3. compensates: Vocabulary.com
  4. Compensates, compensates: Wordnik
  5. compensates: Cambridge Advanced Learner's Dictionary
  6. compensates: Wiktionary
  7. compensates: Dictionary.com
  8. compensates: Cambridge Essential American English Dictionary
  9. compensates: TheFreeDictionary.com

Business (1 matching dictionary)
  1. compensates: Legal dictionary

Medicine (1 matching dictionary)
  1. compensates: Merriam-Webster Medical Dictionary

(Note: See compensate as well.)

Definitions from Wiktionary (compensate)

verb:  To do (something good) after (something bad) happens
verb:  To pay or reward someone in exchange for work done or some other consideration.
verb:  (ambitransitive) To make up for; to do something in place of something else; to correct, satisfy; to reach an agreement such that the scales are literally or (metaphorically) balanced; to equalize or make even.
verb:  To adjust or adapt to a change, often a harm or deprivation.
▸ Also see compensate


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