House Approves Comp Time Legislation

On May 8, the House passed the Working Families Flexibility Act of 2013 (H.R. 1406), which would allow private-sector employers the option to offer workers the choice of paid-time-off or “comp time”, in lieu of compensation, for overtime hours worked in a workweek.  The bill passed 223-204, mostly along party lines, with Republicans supporting the bill and Democrats opposing. H.R. 1406 would allow employers to offer employees a choice between cash wages and accruing comp time for overtime hours worked. Employees who want to receive cash wages would continue to do so. No employee can be forced to take comp time instead of receiving overtime pay.  The employer and the employee would be required to complete a written agreement to use comp time, entered into knowingly and voluntarily by the employee. Where the employee is represented by a union, the agreement to take comp time must be part of the collective bargaining agreement negotiated between the union and the employer.  The bill retains all existing employee protections in current law, including the 40 hour work week and how overtime compensation is accrued. The bill adds additional safeguards for workers to ensure the choice and use of comp time are truly voluntary. Employees could accrue up to 160 hours of comp time each year. An employer would be required to pay cash wages for any unused time at the end of the year. Workers are free to ‘cash out’ their accrued comp time whenever they choose to do so. Finally, it would require the nonpartisan Government Accountability Office to report to Congress on the extent private-sector employers and employees are using comp time, as well as the number of complaints filed with and enforcement actions taken by the U.S. Department of Labor. AGC previously sent a letter of support of the legislation. Despite passage of the bill in the House, the legislation faces an uphill battle in the Senate and is unlikely to make further progress this Congress. For more information, please contact Jim Young at (202) 547-0133 or youngj@agc.org.