HR2870-119

What This Bill Does

The Working Families Flexibility Act creates a five-year private-sector compensatory-time option under the Fair Labor Standards Act. Eligible non-public-agency employees who have worked at least 1,000 hours for an employer may choose compensatory time off instead of monetary overtime pay, at a rate of at least one and one-half hours off for each overtime hour. Employers may offer the option only through a collective bargaining agreement or a knowing, voluntary written or verifiable agreement made before the overtime work. The bill caps accrual at 160 hours, requires cash payment for unused comp time after each covered 12-month period, lets employers cash out hours above 80 after 30 days notice, lets employees request cash-out, bars intimidation or coercion, creates damages for violations, requires the Department of Labor to update FLSA notices, requires GAO reports, and sunsets the program after five years.

Who Benefits and How

Private-sector employers benefit from a new overtime-management option that can substitute paid time off for immediate cash overtime when employees agree. Hourly employees who prefer paid time off benefit from the ability to bank one-and-one-half hours of leave for each overtime hour. Labor unions with collective bargaining agreements benefit because unionized workers' comp-time arrangements must be negotiated through the bargaining agreement. Congress benefits from GAO reports on use, complaints, enforcement actions, remedies, and penalties during the pilot period.

Who Bears the Burden and How

Private-sector employers must track comp-time accruals, maintain written or verifiable agreements, cash out unused hours, provide requested time off unless it unduly disrupts operations, give notices before discontinuing policies or cashing out excess hours, and avoid coercion. Hourly employees who rely on overtime cash wages may bear financial risk if workplace pressure shifts them toward paid time off instead of immediate overtime pay. The Department of Labor must revise FLSA notice materials within 30 days. The Government Accountability Office must report to Congress for multiple years on comp-time use, complaints, enforcement actions, and remedies. Employers that coerce employees or violate comp-time rights face back pay and liquidated damages.

Key Provisions

• Establishes a five-year private-sector compensatory-time option at one-and-one-half hours off for each overtime hour.
• Requires collective bargaining agreement coverage for represented employees and knowing, voluntary written or verifiable agreements for nonrepresented employees.
• Limits accrual to 160 hours and requires cash-out of unused comp time after each covered 12-month period.
• Prohibits intimidation, threats, and coercion tied to choosing or using compensatory time.
• Provides employee remedies and liquidated damages when employers violate comp-time protections.
• Directs the Department of Labor to update FLSA employee notices and requires GAO reports on program use and enforcement.
• Sunsets the Act and its FLSA amendments five years after enactment.