Last week, the Committee on Education and the Workforce approved H.R. 1406, the Working Families Flexibility Act by a vote of 23-14, sending the measure to the full House of Representatives for consideration. SHRM supports this legislation to allow private-sector employers to give nonexempt employees the choice of paid time off in lieu of payments for any overtime hours worked.
Key provisions of the bill are that it:
- Gives employers the option to offer comp time in lieu of overtime payments.
- Gives employees the choice to elect comp time in lieu of overtime payments if the employer offers such a program.
- Allows employees to accrue 1 1/2 hours of paid time off for each hour of overtime worked.
- Prohibits employers from intimidating or coercing employees into a comp time arrangement.
- Allows employees to use the comp time at their discretion, unless the time off unduly disrupts the business operations of the employer, the same standard the public sector has used for 30 years.
- Allows employees to opt out of the comp time arrangement at any time and receive cash payments for banked hours.
- Requires employers to cash out any unused comp time at year's end.
Juanita Phillips testified on behalf of SHRM in support of H.R. 1406 on April 11, and several members of SHRM's A-Team have submitted blog posts on the issue of comp time. SHRM also spearheaded an employer-community letter in support of the bill. H.R. 1406 will likely be on the House floor for a vote in early May.
To date, over 700 SHRM members have contacted Congress in support of H.R. 1406. There is still time to make your HR Voice heard on this bill to give additional flexibility to employers and employees. Contact your representative today by clicking HERE.