New overtime pay rules just might be on the horizon.
Last week, the House of Representatives passed a bill, called the Working Families Flexibility Act of 2017, that would change the way overtime pay is offered. As a part of this law, private sector workers would have the choice to elect compensatory time in lieu of overtime pay. This bill was previously introduced in 2013 and passed by the House, but was never signed by President Obama.
Currently, the United States operates under the Fair Standards Labor Act. Under this law, an employee gets paid time and a half when working overtime. A private sector employee cannot elect any other options, such as compensatory time, instead of overtime pay, even if both the employer and employee agree. However, an employee in the state or federal line of work are able to elect comp time over overtime pay.
The Working Families Flexibility Act would allow an employee to choose compensatory time off instead of overtime pay. Now, this bill is pending in The Senate.
The bill might have never made it to former President Obama’s desk, but it is likely it will make it to President Trump’s if passed in the Senate. The White House released a statement that Trump advisers would advocate for the President to sign the bill into law, but only if it arrives on his desk in its current writing.
While a majority of Republicans back this bill, Democrats hold a strong opposition to it. CNN Money Writer Julia Horowitz writes, ” [Democrats’] chief concern is that employers have the final say on when that time can be used, which means bosses can defer compensating employees for overtime work.” However, there are many who argue that this would do more to benefit employees than to harm them. Two members from The Society of Human Resources and Management asked Congress to change the current overtime pay rules. Click here to read their arguments and critiques.
In addition to this bill, there have been several others that would change current laws regarding pay and overall business operation. Make sure to be aware of changes in policy in order to comply.