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http://www.addictinginfo.org/2013/05...exibility-act/
The GOP-led U.S. House voted to allow employers to replace overtime pay, as currently required by the Fair Labor Standards Act (FLSA), with compensatory time off, or comp time. This sounds great until the bill, inappropriately titled “The Working Families Flexibility Act,” is actually looked at. Despite its claim of increased flexibility, it will make it easier for employers to schedule lots of overtime without paying, and give workers far less flexibility in their lives.
While the comp time would be provided at the same time-and-a-half rate as the FLSA requires for overtime, it would hurt the many low-wage, hourly workers in this country who so frequently depend on overtime pay to make ends meet.
Employers must pay out any comp time no later than 31 days after the end of the company’s year or the end of the calendar year, whichever the company adheres to. While that may wind up being a fairly hefty chunk of pay all at once, it doesn’t help with weekly and monthly expenses for those who are used to depending on overtime pay, though an employee can request payment for any unused comp time at any time under this act.
Furthermore, that accrued and unused comp time is essentially an interest-free loan to the employer, right out of the employees’ pockets. Yes, employers have to pay if the time isn’t used, but they get a 30-day window, even if the employee requests to have comp time cashed out early. With that window, the employee may or may not see the money on their next paycheck, making it harder to plan and to meet unexpected expenses.
While the comp time would be provided at the same time-and-a-half rate as the FLSA requires for overtime, it would hurt the many low-wage, hourly workers in this country who so frequently depend on overtime pay to make ends meet.
Employers must pay out any comp time no later than 31 days after the end of the company’s year or the end of the calendar year, whichever the company adheres to. While that may wind up being a fairly hefty chunk of pay all at once, it doesn’t help with weekly and monthly expenses for those who are used to depending on overtime pay, though an employee can request payment for any unused comp time at any time under this act.
Furthermore, that accrued and unused comp time is essentially an interest-free loan to the employer, right out of the employees’ pockets. Yes, employers have to pay if the time isn’t used, but they get a 30-day window, even if the employee requests to have comp time cashed out early. With that window, the employee may or may not see the money on their next paycheck, making it harder to plan and to meet unexpected expenses.