Working Families Flexibility: Private Sector Employees Can Choose Comp Time Instead of Overtime Pay.
This Act allows private sector employees, under specific conditions, to choose paid compensatory time off (1.5 hours for every overtime hour) instead of monetary overtime compensation. This choice must be voluntary, agreed upon in writing, and cannot be a condition of employment. The change aims to give employees greater flexibility in balancing work and personal life, but strict rules are in place to prevent employer coercion.
Key points
Choice Option: Private employees can choose 1.5 hours of paid compensatory time off for every hour of overtime worked, instead of receiving overtime pay.
Voluntary Agreement Required: The choice must be voluntary, agreed upon in writing, and not a condition of employment. Employees must have worked at least 1,000 hours in the preceding 12 months to be eligible.
Accrual Limit and Payout: Employees can accrue a maximum of 160 hours of compensatory time. Unused time must be paid out in cash annually (by January 31st) or upon termination of employment.
Employee Protection: Employers are prohibited from intimidating, threatening, or coercing employees regarding their choice to request or not request compensatory time off. Violations result in financial penalties.
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