The U.S. House of Representatives voted yesterday to allow private-sector employers to grant compensatory time to their employees instead of overtime. Jackson Lewis, NJBIA’s Legal Hotline provider, has the details.
The Working Families Flexibility Act (H.R. 1180, S. 801) would amend the Fair Labor Standards Act to provide employees with 1.5 hours of compensatory time for each overtime hour worked, provided both the employer and employee agree to the arrangement in writing.
Currently, non-exempt employees must receive overtime pay at one-and-one-half times their regular rate of pay for each hour worked over 40 in a workweek.
Employers should be mindful that many states have their own overtime laws that may not permit the use of compensatory time.