Working Families Flexibility Act

Summary#

This bill would change the Fair Labor Standards Act to allow private employers to offer compensatory time off (comp time) instead of paying overtime wages. Comp time would be given at a rate of 1.5 hours of leave for each overtime hour worked. It applies only to private‑sector employees (not public agency workers).

Employers may provide comp time under a collective bargaining agreement, or under a voluntary, written or otherwise verifiable agreement with a non‑represented employee. An employee must have worked at least 1,000 hours for the employer in the previous 12 months before agreeing to or receiving comp time. An employee may accrue up to 160 hours of comp time.

Employers must pay employees for unused comp time earned during the prior year by January 31 (or within 31 days after another 12‑month period the employer sets). Employers may pay out unused comp time in excess of 80 hours after giving the employee 30 days notice. Employers may end a comp‑time policy with 30 days notice and must pay out accrued comp time. An employee may withdraw the agreement or ask in writing for payment of unused comp time; the employer must pay within 30 days. On termination of employment, the employer must pay the employee for unused comp time.

Payment for unused comp time must be at least the higher of (1) the regular rate when the comp time was earned or (2) the final regular rate when paid. Any payment owed for unused comp time is treated as unpaid overtime compensation. Employers are prohibited from intimidating, threatening, or coercing employees about choosing or using comp time.

The bill adds a specific remedy for employers who violate the anti‑coercion rule, revising section 16 of the FLSA to make such employers liable for compensation for each hour of accrued comp time and additional liquidated damages as described in the bill. The Secretary of Labor must update the required written notice to employees within 30 days to reflect these changes. The Comptroller General (GAO) must report to Congress beginning 2 years after enactment and in each of the next 3 years on how comp time is used, employee choices, complaints, enforcement actions, and remedies. The entire act would expire 5 years after enactment.

What it means for you#

• If you are a private‑sector employee: you could choose comp time instead of overtime pay only if you meet the 1,000‑hour requirement and you sign a voluntary, verifiable agreement (or your union agrees). You would earn 1.5 hours of leave for each overtime hour, could accrue up to 160 hours, and could be paid for unused time when you leave or at required yearly payout times. You cannot be forced or threatened about choosing or using comp time.
• If you are an employer: you could offer comp time through a union contract or a written/verifiable agreement with eligible employees. You must track accruals, follow payout timing rules, allow employees to request payout or withdraw agreement, avoid coercion, and follow notice requirements before ending a comp‑time program or paying out excess hours.
• For the Department of Labor and Congress: the Labor Department must update its employee notice quickly, and the GAO must produce multiple reports starting two years after enactment. The law would automatically end after five years.

Expenses#

No publicly available information on estimated federal or private costs or savings is provided in the bill text. The bill does require the Secretary of Labor to revise employee notice materials and requires the Comptroller General to prepare several reports, but the bill does not include cost estimates.

Proponents' View#

No publicly available information in the bill text about proponents' stated views or arguments.

Opponents' View#

No publicly available information in the bill text about opponents' stated views or arguments.