S.1158 - Working Families Flexibility Act of 2025 (119th Congress)
Summary
The Working Families Flexibility Act of 2025 (S.1158) aims to amend the Fair Labor Standards Act of 1938, allowing private-sector employees to receive compensatory time off instead of monetary overtime pay. This bill permits employees to accrue compensatory time at a rate of one and a half hours for each overtime hour worked, subject to certain conditions and agreements between employers and employees. The bill includes provisions for accruing time, payout requirements, and protections against employer coercion.
Expected Effects
If enacted, the bill would provide employees with the option to choose compensatory time off over overtime pay, potentially offering greater flexibility in managing their work-life balance. It also introduces new requirements for employers regarding compensatory time policies, record-keeping, and employee notifications. The sunset clause ensures the act's provisions will be reviewed after five years.
Potential Benefits
- Increased Flexibility: Employees gain the option to choose time off instead of overtime pay, potentially improving work-life balance.
- Voluntary Agreements: The bill requires voluntary agreements between employers and employees, ensuring employees are not forced into accepting compensatory time.
- Hour Limits and Payouts: Limits on accrued compensatory time and requirements for timely payouts protect employees from accumulating excessive unused time.
- Protection Against Coercion: The bill prohibits employers from intimidating or coercing employees regarding their choice of compensatory time.
- GAO Report: Regular reports to Congress will monitor the implementation and impact of the act, ensuring accountability.
Most Benefited Areas:
Potential Disadvantages
- Potential for Employer Abuse: Some employers may pressure employees to choose compensatory time, especially in non-unionized settings.
- Complexity in Implementation: The administrative burden on employers to track and manage compensatory time could be significant.
- Reduced Immediate Income: Employees who choose compensatory time may experience a delay in receiving compensation for overtime work.
- Sunset Clause: The act's expiration after five years creates uncertainty for both employers and employees.
- Limited Scope: The act does not apply to public-sector employees, creating a disparity in benefits.
Constitutional Alignment
The bill's alignment with the US Constitution is primarily related to Congress's power to regulate commerce (Article I, Section 8). The Fair Labor Standards Act, which this bill amends, is based on this power. The bill also touches upon individual liberties, as it seeks to ensure that agreements for compensatory time are entered into voluntarily, aligning with principles of freedom of contract. However, the Constitution does not explicitly address labor regulations in the private sector, leading to ongoing debates about the extent of federal power in this area.
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).