“A bill to amend the Fair Labor Standards Act of 1938 to provide compensatory time for employees in the private sector.”
No CRS summary available for this bill.
This section establishes compensatory time off—equivalent to 1.5 hours for each overtime hour—in lieu of monetary overtime compensation for private sector employees under the Fair Labor Standards Act (FLSA). (As background, the FLSA requires most non-exempt employees to receive overtime pay at not less than 1.5 times their regular rate for hours worked over 40 in a workweek; compensatory time off is currently available only to public agency employees.) The provision applies only if provided via (1) a collective bargaining agreement or (2) for non-represented employees, a pre-work agreement that is knowing, voluntary, not a condition of employment, and documented under FLSA recordkeeping rules, with the employee having worked at least 1,000 hours for the employer in the prior 12 months. Employees may accrue up to 160 hours of compensatory time, which employers must pay out (at the higher of the regular rate when earned or the final regular rate) for unused balances (1) annually by January 31 (or 31 days after the employer's designated 12-month period), (2) for amounts over 80 hours after 30 days' notice, or (3) upon employee request or employment termination; employees may request use within a reasonable period absent undue disruption and may withdraw agreements at any time. Employers may discontinue a compensatory time policy after 30 days' notice (unless a collective bargaining agreement provides otherwise) but are prohibited from intimidating or coercing employees regarding comp time. (Thus, unused compensatory time is treated as unpaid overtime owed upon payout.)
This section amends remedies under section 16 of the Fair Labor Standards Act (FLSA, 29 U.S.C. 216) by (1) inserting an exception in subsection (b) to exclude violations of FLSA section 7(r)(4)—which requires public employers to pay certain public safety employees (e.g., firefighters, law enforcement) for accrued compensatory time (i.e., time off at premium rate in lieu of overtime pay) upon termination of employment or employee request after one year—from the general private right of action for unpaid minimum wages, overtime compensation, or related violations; and (2) adding subsection (f) to establish employer liability for such violations equal to the employee's regular rate of compensation (per FLSA section 7(r)(6)(A)) for each hour of accrued compensatory time, plus an equal amount as liquidated damages, reduced pro rata by the regular rate for each hour of such time used by the employee.
This section directs the Secretary of Labor to revise, not later than 30 days after enactment, the materials provided to employers under 29 CFR 516.4 (or similar regulation) for a notice explaining the Fair Labor Standards Act (FLSA) to employees so that such notice reflects amendments made to the FLSA by this Act.
This section directs the Comptroller General of the United States to submit to Congress, beginning two years after enactment and for each of the three years thereafter, a report on the prior reporting period that includes (1) data on employer provision of compensatory time under new FLSA section 7(r) (i.e., option for certain employees to receive paid time off in lieu of overtime pay) and employee uptake of that option; (2) the number of employee 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.