Yesterday, the House of Representative passed H.R. 1180, titled the Working Families Flexibility Act of 2017, a bill that, if it becomes law, would let employers in the private sector to offer their employees the option of receiving overtime pay in the form of paid time off, at a rate equal to one and one-half hours off for every hour worked overtime, or compensatory time, instead of cash wages.
The bill would not change employers’ obligation to pay non-exempt workers overtime at one and one-half times employees’ regular rate for any hours worked over 40. This bill simply would grant the flexibility allowed in the public sector to private sector businesses by allowing employers and employees the flexibility to use paid time off, at a rate of one and one-half hours for each hour of overtime worked.
Prior to providing employees compensatory time, the bill requires that employees agree to accept compensatory time instead of monetary compensation. If either the employer or the employee does not agree to the substitution of compensatory time, then the overtime compensation would need to be in the form of cash wages. The bill also provides anti-retaliation protections for employees who do not accept compensatory time.
What does this mean for Pennsylvania employers?
Because the Pennsylvania Minimum Wage law only allows for certain public sector employers to pay employees in compensatory time, private sector businesses in Pennsylvania may still be subject to liability under state law.
Stay tuned! We will keep you informed.
The Eastern Pennsylvania Employment Log (EPELog) is a publication of the KingSpry Employment Law Practice Group. Jeffrey T. Tucker, Esquire, is our editor-in-chief. EPELog is meant to be informational and does not constitute legal advice.
