New Overtime Bill in a Nutshell

You may have heard about the new Bill that was passed by the House and received by the Senate on May 3, 2017.  But what does it propose? You can see the full text of the Working Families Flexibility Act of 2017 here, but in a nutshell;

  • For any hours worked by the Employee, considered to be overtime, the employee can choose to be paid at the overtime hourly rate OR to receive extra paid vacation time– aka “comp-time”
  • The Employee must explicitly agree, before the performance of work to receive “comp-time” instead of the standard over time pay.
  • The choice cannot be a condition of employment (i.e. “We don’t offer overtime, it must be comp time.” or “You can work the overtime as long as you take comp-time.” etc.)
  • No employee is eligible for comp-time until they have worked at least 1,000 hours during a continuous period of 12 months prior to the agreement to work for comp-time.
  • The Employee receives 1 and 1/2 hours for each hour of overtime worked
  • The Employee cannot accrue more than 160 hours of comp-time.
  • The accrued and unused comp-time shall be paid out- employee paid the cash value- by January 31 of each calendar year.
  • The Employer may choose to pay out up to 80 of the accrued and unused hour, with 30 days written notice to Employee.

Note: These are not rule/provisions currently in effect but are in a Bill that needs to pass through the Senate.

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