The bill reduces employers' overtime liability by excluding certain changing/washing and voluntary training time from compensable hours — saving businesses money and reducing legal uncertainty for union contracts, but risking lower pay, pressured unpaid work, and uneven protections for nonunion workers.
Small-business owners and employers: pay less overtime because certain pre/post-shift changing/washing time and voluntary training held outside regular hours will not count as compensable hours.
Employees who choose to attend truly voluntary training outside their regular hours: retain flexibility to participate without creating an employer obligation to pay for that time.
Unionized workplaces and employers: clearer statutory treatment of pre/post-shift changing/washing time under collective-bargaining agreements reduces legal uncertainty and potential litigation over compensable time.
Employees (especially hourly and middle-class workers): will likely lose pay because time spent changing/washing or attending certain trainings that previously counted as hours worked may no longer be compensable, reducing take-home earnings.
Employees: risk being pressured into unpaid work because employers can label activities as 'voluntary' training held off the clock or reclassify on-the-job tasks as off-hours training, creating incentives for uncompensated attendance.
Nonunion workers and non-unionized workplaces: may be disadvantaged relative to unionized workers if collective-bargaining agreements preserve compensation for excluded changing/washing time, producing uneven protections across the workforce.
Based on analysis of 2 sections of legislative text.
Excludes certain changing/washing time covered by existing collective‑bargaining practice and voluntary outside‑of‑hours education/training from 'hours worked' under the FLSA.
Changes the Fair Labor Standards Act definition of “hours worked” to exclude two kinds of time from paid work hours: (1) time spent changing clothes or washing at the start or end of the day when that time already was excluded during the week by an existing collective‑bargaining agreement or long‑standing custom under that agreement; and (2) time spent attending or participating in education, training, or similar activities outside an employee’s regular work hours if attendance is voluntary, the employer takes no adverse action for nonattendance, and the employee does not perform work while attending. The rule applies to hours worked on or after the law’s enactment. Employers may therefore not have to count these specific periods as compensable hours for nonexempt employees, which can reduce payable straight‑time and overtime hours; unions, hourly workers, and employers will be the most directly affected.
Introduced March 21, 2025 by Ashley Hinson · Last progress January 13, 2026