Bill to Permit Employers to Offer Comp Time in Lieu of Overtime Passes House

On May 2, the House passed (229 to 197) the “Working Families Flexibility Act of 2017” (H.R. 1180), which would allow employers to substitute earned compensatory time for overtime worked. Just as overtime pay is calculated at one-and-one-half times the normal rate of pay, compensatory time would have to be calculated as at least one-and-one-half hours for each overtime hour worked. The bill would permit the substitution if the arrangement is agreed to by the employee prior to the performance of the work. If the employee is part of a union, the arrangement would have to be included in the collective bargaining agreement. The language of the bill says that the agreement must be “entered into knowingly and voluntarily by such employee and not as a condition of employment.” Additionally, the provision would only be applicable if the employee has worked at least 1,000 hours for the employer over twelve continuous months prior to the agreement. There is a limit of 160 hours of accrued compensatory time, and all time must be used within a twelve-month period or else the employer must provide monetary compensation to the employee. 

 

The House Education and Workforce Committee has released a fact sheet on the bill which is available here. The measure now moves to the Senate for consideration.