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LABOR & EMPLOYMENT LAW — 5/29/08

Republican House members introduce comp-time measure

The "Family-Friendly Workplace Act" (H.R. 6025), introduced on Tuesday, May 13, would amend Section 16 of the Fair Labor Standards Act (FLSA) to give private employers the option of offering employees the choice of paid time off in lieu of cash wages for overtime hours worked if the employee prefers to take compensatory time instead of overtime pay.

"Comp time makes it easier for workers--especially parents with young children and caregivers for elderly parents--to choose alternatives to the traditional 40-hour work week," said bill sponsor Cathy McMorris Rodgers (R-WA).

Bill provisions. Under H.R. 6025, employees who have worked at least 1,000 hours for the employer during a continuous 12-month period would be given the chance to voluntarily accept one and one half hours of compensatory time off for each hour of overtime pay they would be due under Section 7 of the FLSA.

Employees would have to agree in advance, before the performance of the work, to receive comp time in lieu of monetary overtime compensation. The agreement must be knowing and voluntary on the employee's part, and must not be a condition of employment.

Employees would not be able to accrue more than 160 hours of compensatory time. All unused comp time must be reimbursed in the form of monetary compensation before January 31 of the following year, or a stipulated 12-month period other than the calendar year. Accrued comp time would also be payable in wages upon termination of employment.

The bill would allow employers to discontinue a comp time policy with 30 days' notice to employees, unless a collective bargaining agreement provides otherwise. Employees too would be entitled to withdraw their consent to receiving comp time in lieu of overtime pay for any time accrued that has not yet been used.

Employers would be prohibited from intimidating or coercing employees into requesting (or not requesting) comp time or from requiring any employee to use their accrued comp time. Employees would be permitted to use their accrued comp time "within a reasonable period after making the request if the use of the compensatory time does not unduly disrupt the operations of the employer."

Employers would be required to pay liquidated damages, "reduced by the amount of such rate of compensation for each hour of compensatory time used by such employee," for interfering with employees' comp time rights under the law or for otherwise violating the Act.

A larger agenda. The comp-time measure is part of a broader package of legislation introduced last week by McMorris Rodgers, Kay Granger (R-TX), and the House Republican leadership. Deemed the "American Families Agenda," the lawmakers say their legislation is aimed at simplifying and updating US health, labor and tax laws to meet the 21st century needs of US families. Other initiatives include a bill to eliminate the 18-month limit on COBRA benefits to enhance health insurance portability.

"One of the main foundations of the agenda centers on the special role wives and mothers have in the workforce while in many situations continuing to be the primary caretakers for their family," said Granger. "In 1950, less than 12 percent of mothers with children under the age of six were in the labor force. Today, more than 60 percent of them work outside the home."The bill was referred to the House Committee on Education and Labor.

For more information on this and other topics, consult CCH Employment Practices Guide or CCH Labor Relations.

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