Working Families Flexibility Act of 2025
The proposed changes would fundamentally shift how overtime compensation is handled by private employers. This bill permits employers to offer compensatory time instead of paycheck-based overtime, which could enhance flexibility for employees who prefer time off over financial compensation. However, it also imposes certain conditions, such as allowing employers to limit the maximum amount of compensatory time accrued to 160 hours, and ensuring that employees have worked a minimum of 1,000 hours in the year preceding the agreement for compensatory time.
House Bill 2870, known as the Working Families Flexibility Act of 2025, seeks to amend the Fair Labor Standards Act of 1938 by allowing private sector employees to opt for compensatory time off instead of monetary overtime compensation. Under this bill, for every hour of overtime worked, employees can earn at least one and a half hours of compensatory time off, provided that the arrangement is agreed upon in writing either through a collective bargaining agreement or directly with the employer before the overtime is worked.
There are notable points of contention surrounding HB2870, primarily regarding employee choice and potential coercion concerns. Proponents argue that the bill offers valuable flexibility for working families, allowing them to better manage personal and professional responsibilities. Critics, on the other hand, express fears that the introduction of compensatory time may pressure employees to forego cash compensation for overtime hours, possibly leading to unequal bargaining power between employees and employers as well as a risk of inadequate compensation for unused time off.
The bill also establishes a framework for accountability; employers violating provisions related to compensatory time could face financial liability. A requirement for the Secretary of Labor to update employee informational materials and to report on the use of compensatory time every two years is included, thus facilitating oversight and transparency regarding how this new system operates over time.