On May 2, 2017, the U.S. House of Representatives passed the "Working Families Flexibility Act." The bill would permit employees to accrue up to 160 hours of comp time each year and "cash out" their accrued comp time whenever they choose to do so. An employer would be required to pay cash wages for any unused time at the end of the year. In addition, while the bill permits an employee to accrue up to 160 hours of comp time, an employer can decide unilaterally to provide monetary compensation for up to 80 of those hours.
Proponents of the bill applaud the flexibility, as it would give employees the option of taking comp time instead of overtime pay. Opponents, however, see the legislation as giving employers the ability to withhold overtime pay that would otherwise be owed to employees. The bill would apply to private sector employers since public sector employers already allow the use of comp time.
A companion bill has been introduced in the U.S. Senate, but it is unclear when—or even if—the Senate will address the matter. While the White House has signaled its approval for this type of measure, it should be noted that this type of bill has been proposed over the last several years and gained no traction. MRA will continue to track this bill and provide updates as needed.
Source: Michael Hyatt, HR Government Affairs Director, MRA – The Management Association