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Flexible Work: Overtime Compensation Options for Private Employees

This new law allows private sector employees to choose compensatory time off instead of monetary payment for overtime hours. Employees can accrue up to 160 hours of comp time, which must be paid out if unused by year-end. The act aims to provide greater flexibility in managing work-life balance.
Key points
Choice Option: Employees can choose to receive 1.5 hours of compensatory time off for each hour of overtime worked, instead of overtime pay.
Agreement Conditions: Comp time must be agreed upon voluntarily by the employee in writing, and cannot be a condition of employment.
Hour Limit: Employees can accrue up to 160 hours of compensatory time. Unused hours must be paid out by January 31 of the following year.
Employee Protection: Employers are prohibited from intimidating or coercing employees regarding their choice of overtime compensation.
Payment upon Termination: Any unused compensatory time must be paid out to the employee upon termination of employment.
The Act will expire 5 years after its enactment.
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Status:
Introduced
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Additional Information
Working Families Flexibility Act of 2025
Print number: S 1158
Sponsor: Sen. Lee, Mike [R-UT]
Process start date: 2025-03-26