The Working Families Flexibility Act of 2025 would allow private-sector employers to offer employees compensatory time off instead of overtime pay, provided both parties agree. Under the bill, employees would earn at least 1.5 hours of time off for each hour of overtime worked, with a maximum accrual of 160 hours per year; unused time over 80 hours must be paid out by January 31st each year, and all remaining comp time must be paid out upon termination of employment. The agreement must be voluntary and not a condition of employment, apply only to workers with at least 1,000 hours of service, and be documented in writing. The bill includes protections against employer coercion and allows employees to withdraw from the arrangement anytime or request payment for accrued time within 30 days. The Department of Labor must update employee notices within 30 days, and the Government Accountability Office will report to Congress for four years on how often the program is used and any violations. The law would automatically expire after five years.
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