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The bill expands the option of paid compensatory time and strengthens transparency and targeted enforcement to give workers choice and clearer rules, but it shifts short‑term cash to time‑off for some workers and raises compliance, reporting, and litigation costs—especially for small employers—while potentially narrowing certain legal remedies.
Employees covered by the bill can opt to receive paid compensatory time off instead of immediate overtime pay, giving many workers greater schedule flexibility and work–life balance.
Employees who are denied compensatory time have a clear private remedy: recovery of an hourly rate for each unused comp hour plus equal liquidated damages, which strengthens enforcement and deters employer abuse.
The bill builds worker protections—anti‑coercion rules, accrual caps, and guaranteed pay for unused compensatory time (with awards reduced by hours actually used)—which reduce some avenues for misuse of comp time.
Low‑income workers who accept compensatory time instead of overtime risk losing immediate cash pay, which can cause short‑term financial strain for those who depend on overtime wages.
Employers face greater liability exposure and potential litigation costs for comp‑time disputes and recordkeeping, risks that may lead some businesses to raise prices, cut hiring, or reduce hours to offset higher costs.
Small employers and the Department of Labor will face increased administrative, recordkeeping, and reporting burdens (including tight deadlines to update notices and provide data), straining cash flow and agency resources.
Based on analysis of 5 sections of legislative text.
Creates a five-year pilot letting overtime-eligible private-sector employees elect paid comp time instead of cash overtime, with caps, payout rules, and enforcement remedies.
Introduced April 10, 2025 by Mary E. Miller · Last progress April 10, 2025
Creates a five-year pilot that lets overtime-eligible private-sector employees choose paid compensatory time off (comp time) instead of receiving cash overtime, subject to eligibility rules, accrual caps, payout rules, anti‑coercion protections, and recordkeeping. Employers may offer comp time only through a collective bargaining agreement or a voluntary prior written/other verifiable agreement; accrual is capped and unused balances must be paid at specified rates. Establishes a private right of action for employees when employers violate the new comp-time payout rules, requires the Department of Labor to update employee notice materials, and directs the Government Accountability Office to report on usage, complaints, enforcement, and remedies over the pilot period and for four years after the initial report.