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Shannon Vavra May 2, 2017
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How the "Working Families Flexibility Act" would change overtime pay

US Embassy Kabul Afghanistan via Flickr CC

The Working Families Flexibility Act, which passed the House Tuesday, would allow employers to replace overtime monetary pay for employees with additional paid time off instead.

How it would work:

  • The hours given in additional paid time off would be at least one-and-a-half hours for each hour worked overtime, with a limit of 160 hours of compensatory time.
  • The employer can replace additional paid time off with monetary payments as long as they give the employee 30 days notice.
  • The employer can end the deal entirely so long as they give the employee 30 days notice.
  • The employee must voluntarily choose to enter into this kind of agreement, and it cannot be a condition of employment, according to Martha Roby, who is sponsoring the bill.
  • Compensatory time doesn't roll over year to year and the employer must pay the employee in money for unused additional paid time off.