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Flexible Work Hours: Option for Time Off Instead of Overtime Pay

This new law allows private sector employees to choose compensatory time off instead of monetary payment for overtime hours. This offers greater flexibility in managing work and personal life, but requires prior agreement between the employee and employer. The law is set to expire after 5 years.
Key points
Employees can choose compensatory time off (1.5 hours for each overtime hour) instead of extra pay for overtime.
A written agreement between the employee and employer is required before an employee can accrue compensatory time.
Employees can accrue up to 160 hours of compensatory time; unused time will be paid out annually.
Employers cannot force employees to choose compensatory time or interfere with their right to use it.
The law will expire 5 years after its enactment.
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Introduced
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Additional Information
Print number: 119_HR_2870
Sponsor: Rep. Miller, Mary E. [R-IL-15]
Process start date: 2025-04-10