The House passed a bill May 2 that allows private-sector employees to exchange overtime pay for “compensatory time” off.
The bill, introduced by Rep. Martha Roby (R-AL), passed 229-197, mostly along party lines.
Roby said the bill is designed to give workers greater time flexibility to balance work and home obligations. Comp time is an option that has been available to government workers since the mid-1980s, allowing them to choose between an hour and a half of paid comp time or time-and-a-half pay when they work additional hours.
“The workforce has changed tremendously over the years, but the laws and policies that govern the workplace have not,” Roby said. “I’ve always said Congress cannot legislate another hour into the day, but we can update our laws to allow more choice and fairness in how working Americans use their time.”
Congressional Democrats said the bill doesn’t include enough protections for workers who may feel coerced or pressured to opt for comp time instead of overtime pay.
“The choice between overtime pay and comp time is a false choice for workers,” said Rep. Pramila Jayapal (D-WA). “We know what happens in the reality of the workplace. The vague promise of time off in the future is often never realized.”
Julia Judish, an employment attorney for Pillsbury Winthrop Shaw Pittman LLP who worked closely with ASAE on the regulatory changes to the overtime rule proposed by the Obama administration last year, said the bill requires employers to pay employees for unused comp time no later than 13 months after the comp time is earned or, if earlier, on termination.
“It has the effect of delaying payment to employees for overtime hours worked – whether such payment is delivered through granting of paid leave requests or cashing out the banked compensatory time – and it puts control over the timing of such payments primarily in the hands of the employer,” Judish said.
Supporters said there are penalties in the bill for coercion that will serve as a material disincentive for employers to abuse the law. The Trump administration issued a statement of support for the bill and indicated that Trump would sign it into law in its current form.
“After multiple veto threats from the Obama administration, I appreciate the White House working with us to advance this bill,” Roby said.
