Working Families Flexibility Act of 2025
Summary
The Working Families Flexibility Act of 2025 amends the Fair Labor Standards Act of 1938, allowing private-sector employees to receive compensatory time off instead of monetary overtime pay. This is contingent upon agreements between employers and employees or collective bargaining agreements. The act sets limits on accrued compensatory time and mandates compensation for unused time, with provisions against employer coercion.
Expected Effects
The Act aims to provide employees with more flexibility in managing their work-life balance by offering time off in lieu of overtime pay. It could lead to changes in how employers manage overtime and how employees prioritize their compensation preferences. The GAO will report to Congress on the extent to which employers provide compensatory time and the extent to which employees opt to receive compensatory time.
Potential Benefits
- Increased flexibility for employees to manage work-life balance.
- Potential for employees to accrue time off for future use.
- Formalizes compensatory time agreements in the private sector.
- Requires employers to compensate unused compensatory time.
- Protects employees from coercion related to compensatory time choices.
Most Benefited Areas:
Potential Disadvantages
- Potential for employer coercion to favor compensatory time over overtime pay.
- Risk of employees miscalculating the value of time off versus monetary compensation.
- Administrative burden for employers to track and manage compensatory time.
- Possible disruption to business operations if too many employees request time off simultaneously.
- The act may disproportionately affect lower-wage workers who rely on overtime pay.
Most Disadvantaged Areas:
Constitutional Alignment
The Act's alignment with the Constitution is primarily based on Congress's power to regulate commerce (Article I, Section 8, Clause 3). The amendment to the Fair Labor Standards Act falls under this power, as it regulates the terms and conditions of employment in the private sector. The Act also touches upon individual liberties, particularly the freedom of contract, as it allows employees to voluntarily agree to compensatory time arrangements.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).