New Bill May Encourage Employees to Take Paid Time Off Instead of Receiving Overtime Pay

Congress has just passed a bill that would give non-exempt employees the options of choosing to receive either overtime compensation, paid at the rate of one and one-half an employee’s standard rate of pay or to allow those employees to use the time as paid time off. Called the Working Families Flexibility Act, the bill was passed by House Republicans, who claim that workers will not be pressured into choosing paid time off, further, that workers will feel comfortable taking the allotted time off. Opponents are concerned that employees will lack the necessary autonomy if they want to use their comp time. Often, employees feel guilty using PTO days due to busy office environments and demanding bosses.

One specialist noted, employees who take vacation may not be seen as committed, for example, or lose out on promotions. Employees also may fear being seen as replaceable if the take time off.

On the other hand, receiving overtime compensation for extra time worked is a tangible benefit. The bill does have some flexibility in that it allows for employees to change their and “cash out” if they decide they would prefer to receive the compensation rather than the time off.

The bill now heads to the Senate for consideration. For more information, or if you have any wage and hour question, please contact the experienced Atlanta wage and hour lawyers at Buckley Bala Wilson Mew LLP for an immediate case evaluation.