Working Families Flexibility Act of 2025

The Working Families Flexibility Act of 2025 proposes to amend the Fair Labor Standards Act to give private-sector workers the option to receive compensatory time off, or "comp time," in place of traditional overtime pay. Under current law, most private-sector employees must be paid 1.5 times their regular rate for hours worked beyond 40 in a week. This bill would allow employers to offer workers the choice to bank those overtime hours as paid leave at the same rate of 1.5 hours of time off for every hour of overtime worked.

If enacted, the bill would allow employees to accrue up to 160 hours of comp time per year. It aims to provide workers with more flexibility to manage family needs, such as caring for children or elderly parents, by using earned time off rather than receiving extra pay. To protect workers, the bill proposes that any agreement to receive comp time must be voluntary and in writing. It also includes provisions that would allow employees to "cash out" their banked time for pay at any time and would require employers to pay out any unused comp time at the end of the year.