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Tuesday, April 1, 2025

Senator Mike Lee introduces bill for flexibility in overtime compensation

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Sen. Mike Lee, U.S. Senator for Utah | Official U.S. Senate headshot

Sen. Mike Lee, U.S. Senator for Utah | Official U.S. Senate headshot

Senator Mike Lee has introduced the Working Families Flexibility Act to the 119th Congress, aiming to assist workers in managing work-life balance by offering them a choice between monetary compensation or compensatory time off for overtime. The legislation, supported by Senators James Lankford, Kevin Cramer, Marsha Blackburn, and Shelley Moore Capito, seeks to eliminate what it views as unfair discrimination against private-sector employees compared to government employees.

Senator Lee expressed concern over current federal labor laws, stating, "For many families, especially with young children, their most precious commodity is time, But today, federal labor laws restrict the way moms, dads, and everyone else can use their time." He added that government employees have had special exemptions from these laws for decades, which he considers unacceptable.

Senator Capito underscored the importance of flexibility for working parents, saying, "Working parents provide for their families, make ends meet, and take care of all the responsibilities that come with maintaining a household. That’s why now more than ever, moms and dads need the flexibility to maintain work-life balance at home." The proposed legislation aims to offer private-sector workers similar options to those available to government employees regarding overtime benefits.

The bill would allow employers to provide their employees with the option of choosing compensatory time or overtime pay, both accrued at a rate of one and a half times the overtime hours worked. Employers offering this choice would be required to establish written agreements with their employees and integrate these agreements into collective bargaining where applicable. Up to 160 accruable comp time hours could be "cashed out" at the traditional overtime rate at any point during the year. Employee protections such as the 40-hour workweek and overtime pay would remain intact, and additional protections would be instituted to ensure voluntary participation in the program.

The legislation's broader aim is to end discriminatory practices against private-sector workers, assist parents in balancing work and household duties, provide flexibility for workers to choose between time and money, and reduce federal regulatory burdens.

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