House Passes Changes to Overtime Rules

On May 2, 2017, the House of Representatives passed the Working Families Flexibility Act (also known as H.R. 1180). If approved, H.R. 1180 would authorize private employers to offer compensatory time instead of overtime pay for nonexempt employees who work more than 40 hours per week. H.R. 1180 still needs approval from the Senate and the executive branch before it becomes law. Compensatory time off is already a common practice for many federal and state employers, but it is not currently allowed by the Fair Labor Standards Act (FLSA) for private employers. H.R. 1180 would amend the FLSA to allow this practice, if certain conditions are met.

ACTION STEPS

Because H.R. 1180 is not yet law, no action steps are currently required of any employers. This Compliance Bulletin is provided for informational purposes only, to assist employers in understanding the changes H.R. 1180 would bring to current overtime compensation practices in the private sector.

We will continue to monitor the progress of this bill through the legislative process and update you as more information becomes available. For additional information, contact Creative Benefits Inc. at solutions@creativebenefitsinc.com or call us at 610-325-0200 x3111.