Employers could provide workers, by voluntary agreement, with paid time off in lieu of wages as compensation for overtime hours worked under a measure passed May 2 by the House. It now goes to the Senate.
The bill, called the Working Families Flexibility act, has been welcomed by small businesses and national retail and restaurant groups, but the difference could negatively affect the paychecks of workers who rely on the time-and-a-half pay added to their paychecks for the extra hours.
Where the business community railed against the DOL overtime regulations, it hopes the Working Families Flexibility Act proves beneficial. "Unfortunately, today's labor laws make it harder to offer this flexibility". At the end of the year, the employer must pay the employee for unused comp time. Employers are required to provide cash wages at the overtime rate of time-and-a-half within 30 days of receiving an employee request. Under the bill, employers could withhold overtime pay for a long time, which otherwise would be a violation of the FLSA, and it undermines the 40 hours workweek mechanism, he said.
They argued it would give workers more time to spend with their children, run errands, take care of aging parents. Employers would have to allow workers to use their time off within a "reasonable period" after making a request but could deny the request if it would "unduly disrupt" operations.
The 79-year-old law now mandates that certain employees who work more than 40 hours per week must earn time-and-a-half compensation in their next paycheck for the extra time.
But Democrats stand in strong opposition. Even though this bill isn't yet law, it would be wise for employers to track its progress because it could significantly alter the way employers may choose to handle overtime compensation for nonexempt employees. A piece of legislation that has reappeared regularly in Congress and the state houses got new life Tuesday through 229 Republican aye votes in the U.S. House.
The White House offered its support for the bill Tuesday, saying in a statement that the administration believes the bill would help workers balance the competing demands of family and work. But most policy advances have been at the state and local levels, and the private sector progress, while impressive, still leaves tens of millions of workers behind.
He signed the Fair Labor Standards Act into law in 1938.
The bill has been supported by the Trump administration, which put out a press release saying President Trump would likely sign it into law if the bill passes as now written. Six Republicans also voted against the measure, which now heads to the Senate, where it will need the support of eight Democrats to pass without being filibustered.