The Working Families Flexibility Act of 2024 allows private sector employers to offer employees compensatory time off instead of cash overtime pay, but only with worker consent. Under the bill, employees who work overtime can choose to receive one and a half hours of paid time off for each hour of overtime worked, rather than receiving overtime wages. Employees must have worked at least 1,000 hours for their employer before they can participate, and can accrue a maximum of 160 hours of compensatory time per year, with any unused time paid out in cash by January 31st of the following year. The bill includes protections preventing employers from pressuring workers to take compensatory time and requires employees' agreements to be voluntary and documented in writing. The legislation includes a five-year sunset clause and requires the Government Accountability Office to report to Congress annually for four years on how often the provision is used and whether violations occur.
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