Working Families Flexibility Act of 2025

This bill amends the Fair Labor Standards Act of 1938 to allow private sector employees to receive compensatory time off in lieu of monetary overtime compensation. For every hour of overtime worked, an employee may accrue one and a half hours of compensatory time. This option is available only if there is a voluntary agreement , either through a collective bargaining agreement or a written, verifiable agreement between the employer and employee made before the work is performed, and not as a condition of employment. Employees must also have worked at least 1,000 hours for the employer in the preceding 12 months to be eligible. Employees may accrue a maximum of 160 hours of compensatory time . Employers must provide monetary compensation for any unused compensatory time from the previous year by January 31st, or within 31 days of a designated 12-month period. An employer may also pay out compensatory time exceeding 80 hours with 30 days' notice, and employees can request a payout of their accrued time at any point, which the employer must fulfill within 30 days. The bill prohibits employers from intimidating, threatening, or coercing employees regarding their choice to request or not request compensatory time, or to use it. Upon termination of employment, employees must be paid for any unused compensatory time at a rate not less than the higher of their regular rate when the time was earned or their final regular rate. Employees who have accrued compensatory time must be permitted to use it within a reasonable period after requesting it, provided it does not unduly disrupt the employer's operations. The Secretary of Labor is directed to update FLSA notice materials to reflect these changes. Additionally, the Comptroller General will submit annual reports for four years, assessing the extent of compensatory time usage, complaints, and enforcement actions. This Act, including its amendments, will expire five years after its enactment.