Congress is considering comp time legislation to modify the Fair Labor Standards Act (FLSA) on a key provision concerning overtime. Under the law, non-exempt employees who work more than 40 hours in a workweek must be paid time and a half for every hour past 40. The proposed change would allow businesses to offer their employees the option to choose additional time off in lieu of cash payments. The time off would still be accrued at time and a half, and it would be the employee’s choice whether to receive pay (as is currently the case) or to receive additional paid time off. The state and federal governments have had this option available to them for years. The proposed change gives the same option to private sector employers and their workers.
The Society for Human Resource Management (SHRM) is urging its members to contact their House Representatives during the week of April 29 to express support for the change. From my vantage point, the change offers welcome options and flexibility to businesses and their workers, while firmly maintaining the historical requirement that overtime is compensated at time and a half. To learn more about the comp time bill (H.R. 1406) and the proposed changes it represents, visit www.SHRM.org.