Burr Alert: Bill to Allow Employees to Choose Between Overtime Wages and Paid Time Off Passes in House

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The House has finally taken action on overtime laws, though not the type of action employers have been anticipating over the past few years. On May 2, 2017, the U.S. House of Representativespassed a bill entitled the Working Families Flexibility Act of 2017 (H.R. 1180) by a 229-197 vote. The Working Families Flexibility Act of 2017 (“the Act”) would amend the Fair Labor Standards Act (“FLSA”) to allow certain employees to choose to take paid time off rather than overtime pay when working more than 40 hours in a workweek. For example, an employee who works45 hours in a workweek could roll the 5 overtime hours worked into his or her paid time off bank instead of receiving overtime pay for the 5 overtime hours. The overtime hours would be accrued at an overtime rate, which means that the 5 overtime hours would be converted to 7.5 paid time off hours.

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