On May 2, the U.S. House of Representatives passed the Working Families Flexibility Act of 2017 (H.R. 1180
), which would amend the Fair Labor Standards Act to provide compensatory time for employees in the private sector. The bill passed by a vote of 229-197
Ahead of the vote, ABC sent a letter in support of H.R. 1180. The letter emphasized that the Working Families Flexibility Act provides ample employee protections and ensures employees are given the choice of taking overtime in cash payments or in the form of paid time off from work. The letter also emphasized that the legislation would not affect the 40-hour work week and employers would still be obligated to pay overtime at a rate of 1.5 times the employee’s regular rate of pay for any hours worked over 40 within a seven-day work period.
ABC and its member companies have always supported workplace flexibility and have found that flexibility in the workplace leads to a more productive and healthy work environment. However, current wage and hour laws prohibit private-sector employers from offering non-exempt employees the option of paid time off instead of overtime payments – a benefit state and local government employees have long enjoyed. H.R. 1180 offers a reasonable solution for both employers and employees by extending this benefit to the private sector.