H.R. 2870 — Working Families Flexibility Act of 2025

This section establishes a compensatory time off program—allowing eligible private-sector employees (i.e., non-public agency employees working at least 1,000 hours for the employer in the prior 12-month period) to receive 1.5 hours of paid time off per overtime hour in lieu of cash overtime pay—for the 5-year period beginning on the date of enactment. Comp time requires a collective bargaining agreement or individual agreement entered into knowingly and voluntarily before the work (with written or verifiable record), caps accrual at 160 hours, and permits employee use within a reasonable period absent undue disruption to employer operations. Employers must pay out unused comp time monetarily no later than 31 days after each covered 12-month period (e.g., calendar year); upon employee written request, policy discontinuation (with 30 days' notice), payout of excess over 80 hours (with 30 days' notice), or employment termination; at the higher of the regular rate when earned or final regular rate; prohibits employer coercion; and treats such payments as unpaid overtime compensation.

This section amends the remedies provision of the Fair Labor Standards Act (29 U.S.C. 216) by (1) inserting an exception in subsection (b)—which authorizes private employee actions for unpaid minimum wages, overtime compensation, or related violations, plus liquidated damages and attorney fees—to exclude violations of section 7(t)(4), and (2) adding subsection (f) to establish employer liability for such violations in the amount of the employee's regular rate of compensation (per section 7(t)(6)(A)) for each hour of accrued compensatory time, plus an equal amount as liquidated damages reduced by the rate for each hour of such time used by the employee. (Thus, these violations are subject to a narrower remedy than general FLSA wage claims.)

This section directs the Secretary of Labor, not later than 30 days after enactment, to revise materials provided to employers under 29 CFR 516.4 (and similar regulations) for notices explaining the Fair Labor Standards Act (FLSA)—which establishes minimum wage, overtime, and child labor standards—to employees, so that such notices reflect amendments made by this Act.

This section directs the Comptroller General of the United States to submit to Congress, not later than two years after enactment and annually thereafter for four years, a report on the implementation of the new compensatory time provisions under section 7(t) of the Fair Labor Standards Act of 1938 (FLSA)—with respect to the one-year period preceding each report—covering (1) the extent to which employers provide compensatory time and employees opt to receive it; (2) the number of complaints alleging violations filed with the Secretary of Labor; (3) the number of enforcement actions commenced by the Secretary or on behalf of employees; (4) the disposition or status of such complaints and actions; and (5) unpaid wages, damages, penalties, injunctive relief, or other remedies obtained or sought by the Secretary in connection with such actions.