Working Families Flexibility Act of 2025

Key Points

• This bill would change federal labor laws to let private-sector workers choose paid time off instead of cash for working overtime. For every hour of overtime worked, an employee would earn 1.5 hours of 'comp time' to use for personal or family needs.
• To be eligible, an employee must have worked at least 1,000 hours for their employer over the past year. The choice must be completely voluntary, and the law would ban employers from forcing or threatening workers to take time off instead of money.
• Workers could save up to 160 hours of this time off. If the time is not used by the end of the year, or if the worker leaves their job, the employer must pay them the cash value of that time at their highest pay rate.
• While this offers more flexibility for things like school events or doctor visits, employers can deny a specific request to use the time if it would 'unduly disrupt' business operations. However, workers can change their minds and request a cash payout for their saved hours at any time.
• The program is designed as a five-year test period. During this time, the government will track how many people use the option and whether employers are following the rules or if workers are filing complaints about being pressured.