House Passes Bill to Alter Overtime

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On Tuesday, May 2, the US House of Representatives passed   HR 1180, the “Working Families Flexibility Act of 2017.”  The measure amends the Fair Labor Standards Act (FLSA) to allow private employers, including clubs, to utilize compensatory time in lieu of providing overtime pay.  

The bill outlines that employees can be provided 1.5 hours of “comp” time for each hour exceeding 40. Currently, under the FLSA, employees must be paid 1.5 of their normal hourly rate for hours which exceed 40 as overtime compensation. This practice has previously only been allowable by in the public sector.  

Further stipulations include:  

  •  A limitation of accrual of no more than 160 hours; 
  •  A limit of one year of accrual with the option to pay out the unused “comp” time on the last day of the month following the year end;  
  •  The establishment of the payment as the higher of two rates – the employee’s regular rate at the time of the accrual or the payout;  
  •  The option for an employer to pay out unused “comp” time in excess of 80 hours at any time after giving the employee at least 30 days’ notice; and 
  •  The ability of the employee to request payout of unused “comp” time within 30 days.  

 The bill was received by the US Senate for its consideration on May 3. To become effective, it will need to be passed by the majority of the Senate and signed into law by the President. Once enacted, it would become effective after 30 days.  

Stay tuned!  


Posted by Will Flourance at 05/05/2017 01:42:00 PM |