Congress·In Committee·S. 1158

Sen. Lee Introduces Working Families Flexibility Act to Give Private Workers Choice of Comp Time or Overtime Pay

Working Families Flexibility Act of 2025

12 months ago·View on Congress.gov

Part of: Legislative Push for Private-Sector Overtime Flexibility

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Stalled

No legislative action in over 90 days.

Legislative Progress

Senate

House

President

Law

Key Points

This bill would change federal law to let private-sector employees choose paid time off instead of cash for working overtime. For every hour of overtime worked, an employee would receive 1.5 hours of 'comp time' to use for vacation or personal needs later.
To qualify, a worker must have been with their employer for at least a year and worked at least 1,000 hours. The choice must be completely voluntary, and the law would strictly forbid employers from forcing or threatening workers to pick time off instead of money.
Workers could save up to 160 hours of this paid time off. If they do not use it by the end of the year, the employer must pay them the cash value. Employees also have the right to change their minds and ask for a cash payout for their saved hours at any time.
Employers would be allowed to turn down a specific request to use the time off if it would 'unduly disrupt' the business. However, they must allow the employee to use the time within a reasonable window after the request is made.
This policy would expire after five years unless Congress chooses to renew it. During that time, government investigators would track how many people use the program and whether employers are following the rules or facing complaints from workers.

Labor Employment

Impact Analysis

Personal Impact

Who is affectedScoreImpactCertaintyScopeDurationSentiment

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

Milestones

2 milestones2 actions

Mar 26, 2025Senate

Read twice and referred to the Committee on Health, Education, Labor, and Pensions.

Mar 26, 2025

Introduced in Senate

What Happens Next

Projected impacts based on AI analysis

30 days after enactment

Secretary of Labor updates workplace notices to reflect the new comp time option

Employers and workers would learn about the new right to choose comp time instead of overtime pay through updated mandatory workplace postings.

2 years after enactment

GAO begins tracking how the comp time program is working

Two years after the law takes effect, government investigators start reporting to Congress on how many workers and employers are using comp time and whether there are complaints about abuse.

5 years after enactment

The law automatically expires unless Congress renews it

The entire comp time program would shut down five years after enactment. Workers with banked hours would need to be paid out, and the option would disappear unless Congress passes a new law.

Related News

2 articles

The Washington Post·4 months ago

House GOP passes bill changing workers' overtime rules

The House of Representatives advanced the Working Families Flexibility Act of 2025, which would allow private-sector employees to choose paid time off instead of cash for overtime. Supporters argue it provides needed flexibility for parents, while critics fear it could lead to wage theft.

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The Hill·4 months ago

House committee approves bill allowing comp time instead of overtime pay

Republicans on the House Education and Workforce Committee moved forward with the Working Families Flexibility Act. Sponsor Rep. Mary Miller stated the goal is to give parents more control over their schedules, while Democrats argued it undermines the 40-hour work week and overtime protections.