Posted on April 26, 2013

Worker Compensatory Time Bill Approved by House of Representatives

The House Committee on Education and the Workforce approved a bill to allow private employers to offer compensatory time off instead of overtime pay for hourly employees. This bill, named the Working Families Flexibility Act, includes the following proposals:

* Comp time would be offered at a rate of 1.5 hours for each hour worked over 40 hours a week.
* Employers would need to establish a written agreement about the comp time arrangement with their employees.
* The employees would be paid cash for any unused comp time at the end of the year, but they are free to “cash out” their accrued comp time whenever they choose.
* No employee can be forced to take comp time instead of receiving overtime pay.
* Employees could accrue up to 160 hours of comp time each year.

Supporters of the bill say it offers employees more flexibility, while some worry it could take advantage of workers should they be pressured to accept comp time in lieu of overtime pay. This bill has been proposed several times since 1996, so it remains to be seen whether it will move forward.

Sources: U.S. House of Representatives, Bloomberg BNA