House Bill 1406, the Working Families Flexibility Act, passed the House yesterday with a vote of 223-204. The bill would give private employers and their employees the ability to do what governmental employers and employees have long been able to do: take compensatory time off in lieu of being paid overtime. H.R. 1406 authorizes compensatory time off at a rate of no less than one and one half hours for each hour of overtime worked.
Other provisions require that:
- time off arrangements must be set forth in a written agreement prior to the performance of work
- agreements must be voluntary and are only available to employees who have worked at least 1,000 hours of continuous employment with the employer
- employees who choose compensatory time off may not accrue more than 160 hours annually and are subject to an annual cash out for any unused time
- employers may, with 30 days notice, provide cash compensation for an employee’s unused compensatory time in excess of 80 hours
- agreements may be terminated by either the employee or employer
- employers may terminate the agreement with 30 days written notice (except where collective bargaining agreements apply)
- employees may withdraw from an agreement at any time
- within 30 days of an employee’s written withdrawal request, an employer must provide monetary compensation for all unused accrued time off
The bill prohibits threats, intimidation, and coercion and authorizes a private right of action against an employer for monetary compensation due for each hour of compensatory time off accrued as well as liquidated damages in an equal amount. I will report later what happens to this bill in the Senate.