Small biz groups back 'Working Families Flexibility Act'

WASHINGTON, D.C. — The U.S. House has passed a bill that would give employees who work more than 40 hours a week a choice between taking time off or being paid time-and-a-half for the overtime hours.

The Working Families Flexibility Act, HR 1180, sponsored by Rep. Martha Roby, R-Ala., passed by a vote of 229 to 197, largely along party lines. It is supported by most small business trade groups, including the Tire Industry Association, but opposed by a number of family advocacy groups and labor unions.

H.R. 1180 would alter 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 week, according to the National Small Business Association (NSBA).

Supporters of the bill claim some workers would rather take earned time off, known as "comp time," instead of receiving overtime pay, the NSBA said. Under the bill, employees could accrue up to 160 hours of compensatory time in a year, at 1.5 hours for each hour worked.

Democrats largely opposed the bill, saying it would undermine crucial labor protections.

Sen. Mike Lee, R-Utah, has introduced a companion bill (S. 801) in the Senate, but it remains unclear whether Republicans will be able to overcome a Democratic filibuster, the NSBA said. President Trump's advisers have indicated he would sign the bill if presented.

Juanita Duggan, president and CEO of the National Federation of Independent Business (NFIB) noted that the bill allows private-sector employers the option to offer a benefit currently enjoyed by public-sector employers and employees and that it's voluntary — i.e., employees can change their mind and receive overtime compensation in cash.

Ms. Duggan added that a recent survey of NFIB members showed an "overwhelming number" of small business owners favor reform of the FLSA to allow more flexibility in the workplace

The National Partnership for Women & Families calls the bill an "empty promise" that sets up a "dangerous false choice between time and money, when working families urgently need both."

The partnership argues that the bill does not promote family friendly or flexible workplaces, but instead would erode hourly workers' ability to make ends meet, plan for family time, and have predictability, stability and true flexibility at work.

William Samuel, director, Government Affairs Department at the AFL-CIO, wrote in a letter to Congress that H.R. 1180 "would weaken overtime protections under the FLSA, reduce take-home pay for millions of workers and result in longer hours, more unpredictable schedules and higher day care costs for working parents."

The choice between comp time and overtime pay would be up to the employee or subject to a bargaining agreement, the NSBA said. Any unused time would have to be paid back by the employer at year-end.

Republican supporters have said that the legislation brings needed reform to the "outdated" FLSA and would give private-sector employees more flexibility to meet family needs, go to appointments and otherwise achieve a work-life balance.