Over heavy opposition by the Democrats, a hotly debated bill was passed May 8th by House Republicans that will potentially loosen federal overtime laws. The bill would amend long-standing labor laws (the 75 year old FLSA) by allowing private-sector employers to offer compensatory time off in lieu of time-and-a-half pay for overtime. (The protections under FLSA were put in place to prevent employers from abusing the system and avoiding paying overtime to workers who put in more than 40 hours per week.)
The supporters of the bill have pitched it as an update to federal law, with the obligatory fluff that "it's about helping working moms and dads, providing the ability to commit time at home," per Rep. Martha Roby (R-Ala).
Under the bill, employees may use their comp time only at the employer's convenience. If a business is necessarily inflexible when it comes to scheduling time off as the business may relay on a small number of employees for an entire function, then comp time may not be a viable alternative. For the small employer, the concern may be the potential lost productivity and the additional paperwork for tracking comp time accrued and used.
Yes, the bill has put in provisions to protect against abuse, and only offers the workers a chance to opt for the extra time off if that's what they want. But I side with the Democrats that such an option is ripe for abuse by unscrupulous employers. The bill is a potential way for extra work to be imposed on workers with no additional cost to the employer.
Vicki Shabo is the Director of Work and Family Programs of the non-partisan National Partnership for Women and Families. Her organization is staunchly opposed to H.R. 1406 and sees it as a wolf dressed in sheep's clothing. "This is a dangerous proposal that pretends to be something that will help working families. It will take money out of worker's pockets for overtime pay that they otherwise would have received in wages and instead replace it with possibly an empty promise or a mirage of time that's out in front of them that they may never be able to take."
"For the record, there are many ways for Congress to improve both worker pay and work life balance, including raising the minimum wage, instituting paid sick leave, ending discriminatory pay practices, easing the formation of unions and promoting advance notice for worker scheduling, The House bill ignores what is helpful and embraces what is harmful." The New York Times, May 10, 2013.
I highly doubt that this bill will go much further. The White House stated in early May that the president would be advised to veto such legislation on the grounds that it would weaken protections in the Fair Labor Standards Act.
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