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.