This bill would allow private sector employees to receive compensatory time off instead of overtime pay for the first time under federal law. Currently, only government employees can receive "comp time," but this legislation would extend that option to private sector workers during a five-year pilot period starting when the law takes effect. To be eligible, employees must work at least 1,000 hours per year and either have a union contract that allows comp time or make a voluntary written agreement with their employer.
The bill sets several worker protections, including a 160-hour cap on accrued comp time, requirements that employers pay out unused time annually, and prohibitions against employers coercing workers to choose comp time over cash. Employees can withdraw from comp time agreements at any time and must be allowed to use their accrued time within a reasonable period unless it would seriously disrupt business operations. When comp time is paid out, workers receive whichever rate is higher: their pay rate when the time was earned or their current pay rate.
The legislation requires the Department of Labor to update workplace notices within 30 days and mandates that the Government Accountability Office provide annual reports to Congress for five years tracking how the program is used and any violations. The bill does not specify funding amounts since it primarily changes labor law rather than creating new spending programs.
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