II 119THCONGRESS 1 STSESSION S. 1158 To amend the Fair Labor Standards Act of 1938 to provide compensatory time for employees in the private sector. IN THE SENATE OF THE UNITED STATES MARCH26, 2025 Mr. L EE(for himself, Mr. LANKFORD, Mr. CRAMER, Mrs. CAPITO, and Mrs. B LACKBURN) introduced the following bill; which was read twice and re- ferred to the Committee on Health, Education, Labor, and Pensions A BILL To amend the Fair Labor Standards Act of 1938 to provide compensatory time for employees in the private sector. Be it enacted by the Senate and House of Representa-1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Working Families 4 Flexibility Act of 2025’’. 5 SEC. 2. COMPENSATORY TIME. 6 Section 7 of the Fair Labor Standards Act of 1938 7 (29 U.S.C. 207) is amended by inserting after subsection 8 (q) the following: 9 VerDate Sep 11 2014 22:30 Apr 01, 2025 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1158.IS S1158 ssavage on LAPJG3WLY3PROD with BILLS 2 •S 1158 IS ‘‘(r) COMPENSATORY TIMEOFF FORPRIVATEEM-1 PLOYEES.— 2 ‘‘(1) G ENERAL RULE.—An employee may re-3 ceive, in accordance with this subsection and in lieu 4 of monetary overtime compensation, compensatory 5 time off at a rate not less than one and one-half 6 hours for each hour of employment for which over-7 time compensation is required by this section. 8 ‘‘(2) C ONDITIONS.—An employer may provide 9 compensatory time to employees under paragraph 10 (1) only if such time is provided in accordance 11 with— 12 ‘‘(A) applicable provisions of a collective 13 bargaining agreement between the employer 14 and the labor organization that has been cer-15 tified or recognized as the representative of the 16 employees under applicable law; or 17 ‘‘(B) in the case of employees who are not 18 represented by a labor organization that has 19 been certified or recognized as the representa-20 tive of such employees under applicable law, an 21 agreement arrived at between the employer and 22 employee before the performance of the work 23 and affirmed by a written or otherwise 24 VerDate Sep 11 2014 22:30 Apr 01, 2025 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1158.IS S1158 ssavage on LAPJG3WLY3PROD with BILLS 3 •S 1158 IS verifiable record maintained in accordance with 1 section 11(c)— 2 ‘‘(i) in which the employer has offered 3 and the employee has chosen to receive 4 compensatory time in lieu of monetary 5 overtime compensation; and 6 ‘‘(ii) entered into knowingly and vol-7 untarily by such employees and not as a 8 condition of employment. 9 No employee may receive or agree to receive com-10 pensatory time off under this subsection unless the 11 employee has worked at least 1,000 hours for the 12 employee’s employer during a period of continuous 13 employment with the employer in the 12-month pe-14 riod before the date of agreement or receipt of com-15 pensatory time off. 16 ‘‘(3) H OUR LIMIT.— 17 ‘‘(A) M AXIMUM HOURS .—An employee 18 may accrue not more than 160 hours of com-19 pensatory time. 20 ‘‘(B) C OMPENSATION DATE .—Not later 21 than January 31 of each calendar year, the em-22 ployee’s employer shall provide monetary com-23 pensation for any unused compensatory time off 24 accrued during the preceding calendar year that 25 VerDate Sep 11 2014 22:30 Apr 01, 2025 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1158.IS S1158 ssavage on LAPJG3WLY3PROD with BILLS 4 •S 1158 IS was not used prior to December 31 of the pre-1 ceding year at the rate prescribed by paragraph 2 (6). An employer may designate and commu-3 nicate to the employer’s employees a 12-month 4 period other than the calendar year, in which 5 case such compensation shall be provided not 6 later than 31 days after the end of such 12- 7 month period. 8 ‘‘(C) E XCESS OF 80 HOURS .—The em-9 ployer may provide monetary compensation for 10 an employee’s unused compensatory time in ex-11 cess of 80 hours at any time after giving the 12 employee at least 30 days notice. Such com-13 pensation shall be provided at the rate pre-14 scribed by paragraph (6). 15 ‘‘(D) P OLICY.—Except where a collective 16 bargaining agreement provides otherwise, an 17 employer that has adopted a policy offering 18 compensatory time to employees may dis-19 continue such policy upon giving employees 30 20 days notice. 21 ‘‘(E) W RITTEN REQUEST.—An employee 22 may withdraw an agreement described in para-23 graph (2)(B) at any time. An employee may 24 also request in writing that monetary com-25 VerDate Sep 11 2014 22:30 Apr 01, 2025 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S1158.IS S1158 ssavage on LAPJG3WLY3PROD with BILLS 5 •S 1158 IS pensation be provided, at any time, for all com-1 pensatory time accrued that has not yet been 2 used. Within 30 days of receiving the written 3 request, the employer shall provide the em-4 ployee the monetary compensation due in ac-5 cordance with paragraph (6). 6 ‘‘(4) P RIVATE EMPLOYER ACTIONS .—An em-7 ployer that provides compensatory time under para-8 graph (1) to employees shall not directly or indi-9 rectly intimidate, threaten, or coerce or attempt to 10 intimidate, threaten, or coerce any employee for the 11 purpose of— 12 ‘‘(A) interfering with such employee’s 13 rights under this subsection to request or not 14 request compensatory time off in lieu of pay-15 ment of monetary overtime compensation for 16 overtime hours; or 17 ‘‘(B) requiring any employee to use such 18 compensatory time. 19 ‘‘(5) T ERMINATION OF EMPLOYMENT .—An em-20 ployee who has accrued compensatory time off au-21 thorized to be provided under paragraph (1) shall, 22 upon the voluntary or involuntary termination of 23 employment, be paid for the unused compensatory 24 time in accordance with paragraph (6). 25 VerDate Sep 11 2014 22:30 Apr 01, 2025 Jkt 059200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S1158.IS S1158 ssavage on LAPJG3WLY3PROD with BILLS 6 •S 1158 IS ‘‘(6) RATE OF COMPENSATION .— 1 ‘‘(A) G ENERAL RULE.—If compensation is 2 to be paid to an employee for accrued compen-3 satory time off, such compensation shall be paid 4 at a rate of compensation not less than— 5 ‘‘(i) the regular rate received by such 6 employee when the compensatory time was 7 earned; or 8 ‘‘(ii) the final regular rate received by 9 such employee, 10 whichever is higher. 11 ‘‘(B) C ONSIDERATION OF PAYMENT .—Any 12 payment owed to an employee under this sub-13 section for unused compensatory time shall be 14 considered unpaid overtime compensation. 15 ‘‘(7) U SE OF TIME.—An employee— 16 ‘‘(A) who has accrued compensatory time 17 off authorized to be provided under paragraph 18 (1); and 19 ‘‘(B) who has requested the use of such 20 compensatory time, 21 shall be permitted by the employee’s employer to use 22 such time within a reasonable period after making 23 the request if the use of the compensatory time does 24 not unduly disrupt the operations of the employer. 25 VerDate Sep 11 2014 22:30 Apr 01, 2025 Jkt 059200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S1158.IS S1158 ssavage on LAPJG3WLY3PROD with BILLS 7 •S 1158 IS ‘‘(8) DEFINITIONS.—For purposes of this sub-1 section— 2 ‘‘(A) the term ‘employee’ does not include 3 an employee of a public agency; and 4 ‘‘(B) the terms ‘overtime compensation’, 5 ‘compensatory time’, and ‘compensatory time 6 off’ shall have the meanings given such terms 7 by subsection (o)(7).’’. 8 SEC. 3. REMEDIES. 9 Section 16 of the Fair Labor Standards Act of 1938 10 (29 U.S.C. 216) is amended— 11 (1) in subsection (b), in the first sentence, by 12 striking ‘‘(b) Any employer’’ and inserting ‘‘(b) Ex-13 cept as provided in subsection (f), any employer’’; 14 and 15 (2) by adding at the end the following: 16 ‘‘(f) An employer that violates section 7(r)(4) shall 17 be liable to the employee affected in the amount of the 18 rate of compensation (determined in accordance with sec-19 tion 7(r)(6)(A)) for each hour of compensatory time ac-20 crued by the employee and in an additional equal amount 21 as liquidated damages reduced by the amount of such rate 22 of compensation for each hour of compensatory time used 23 by such employee.’’. 24 VerDate Sep 11 2014 22:30 Apr 01, 2025 Jkt 059200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S1158.IS S1158 ssavage on LAPJG3WLY3PROD with BILLS 8 •S 1158 IS SEC. 4. NOTICE TO EMPLOYEES. 1 Not later than 30 days after the date of enactment 2 of this Act, the Secretary of Labor shall revise the mate-3 rials the Secretary provides, under regulations published 4 in section 516.4 of title 29, Code of Federal Regulations 5 (or any corresponding similar regulation or ruling), to em-6 ployers for purposes of a notice explaining the Fair Labor 7 Standards Act of 1938 (29 U.S.C. 201 et seq.) to employ-8 ees so that such notice reflects the amendments made to 9 such Act by this Act. 10 SEC. 5. GAO REPORT. 11 Beginning 2 years after the date of enactment of this 12 Act and each of the 3 years thereafter, the Comptroller 13 General shall submit a report to Congress providing, with 14 respect to the reporting period immediately prior to each 15 such report— 16 (1) data concerning the extent to which employ-17 ers provide compensatory time pursuant to section 18 7(r) of the Fair Labor Standards Act of 1938, as 19 added by this Act, and the extent to which employ-20 ees opt to receive compensatory time; 21 (2) the number of complaints alleging a viola-22 tion of such section filed by any employee with the 23 Secretary of Labor; 24 (3) the number of enforcement actions com-25 menced by the Secretary or commenced by the Sec-26 VerDate Sep 11 2014 22:30 Apr 01, 2025 Jkt 059200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S1158.IS S1158 ssavage on LAPJG3WLY3PROD with BILLS 9 •S 1158 IS retary on behalf of any employee for alleged viola-1 tions of such section; 2 (4) the disposition or status of such complaints 3 and actions described in paragraphs (2) and (3); and 4 (5) an account of any unpaid wages, damages, 5 penalties, injunctive relief, or other remedies ob-6 tained or sought by the Secretary in connection with 7 such actions described in paragraph (3). 8 SEC. 6. SUNSET. 9 This Act and the amendments made by this Act shall 10 expire 5 years after the date of enactment of this Act. 11 Æ VerDate Sep 11 2014 22:30 Apr 01, 2025 Jkt 059200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6301 E:\BILLS\S1158.IS S1158 ssavage on LAPJG3WLY3PROD with BILLS