A new bill could go into effect that would significantly impact overtime wage requirements and change the Fair Labor Standards Act (“FLSA”). The Working Families Flexibility Act would allow private sector employees to choose between receiving overtime wages or “overtime paid time off.” In other words, if the employee elects overtime PTO, for every one hour worked overtime, the employee would receive one and one-half hours of paid time off. This was a choice formerly available only to private sector employees. The U.S. House of Representatives voted to pass the bill on Tuesday.
The following summarizes the key provisions of the bill:
- Employees can choose between overtime pay or time and a half PTO for up to 160 hours per year;
- A written agreement is required between employers and employees;
- The employer cannot require employees to choose one over the other.
While many see this bill as a way to allow employees more flexibility, critics argue that it is a way to undercut overtime wage requirements. The bill must pass through Senate before it goes into effect.
In addition to these potential changes to federal wage law, Arizona employers are also required to comply with the newly enacted Prop 206 starting July 1, 2017. Pursuant to Prop 206, employees will accrue one hour of paid sick time for every thirty hours worked, without exception.
For more information on Prop 206, see http://www.davismiles.com/businesses-beware-voters-raise-employee-wages/. Follow Davis Miles McGuire Gardner on Linked In and Facebook for more updates on the Working Families Flexibility Act and other employment law matters.