Amends the Fair Labor Standards Act to allow private sector employees to choose compensatory time off instead of monetary overtime compensation.
The Working Families Flexibility Act of 2025 amends the Fair Labor Standards Act of 1938 to allow private sector employees to choose compensatory time off instead of monetary overtime compensation. Employers can offer this option, and employees can choose to receive compensatory time off at a rate of at least one and a half hours for each hour of overtime worked. Employers can also provide monetary compensation for unused compensatory time, but must give employees 30 days' notice. The Act also requires employers to pay employees for unused compensatory time upon termination of employment.
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