May 10, 2017 By James B. Shrimp Last week the U.S. House of Representatives passed House Resolution 1180, entitled the Working Families Flexibility Act of 2017 (“WFFA”). Consideration of the WFFA is now onto the Senate. The WFFA will amend the Fair Labor Standards Act to permit an employer, at the employer’s option, to provide it’s employees with compensatory time in lieu of overtime. Should certain conditions apply, the employee will receive 1.5 hours of compensatory time for each hour of overtime worked. Conditions Under the WFFA, an employer may only provide compensatory time only if – (1) there is a written agreement wherein in the employee agrees to accept compensatory time in lieu of pay; (2) entered into voluntarily; and (3) the employee has worked with the employer for at least 1,000 hours during a 12-month period of continuous employment. Hour Limit/Payout Under the WFFA:
- an employee may not accrue more than 160 hours of compensatory time (approximately 105 overtime hours)
- there is no carry over to the next year, e., should an employee have unused compensatory time on December 31 of any given year, it must be paid out to the employee on or before January 31 of the next year.
- if an employee has earned compensatory time in excess of 80 hours, the employer has the right to pay out any compensatory time hours exceeding 80 hours.
- An employee may withdraw from the compensatory plan, or seek payment for all compensatory time with 30 days notice to the employer.