Working Families Flexibility Act of 2025

This bill amends the Fair Labor Standards Act to allow private-sector employers to offer compensatory time off (comp time) instead of cash overtime pay to eligible employees for a 5-year period.

Sec. 2, Compensatory time: Private employees who work at least 1,000 hours in a 12-month period may receive comp time at 1.5 hours per overtime hour, under a collective bargaining agreement or a voluntary individual written agreement made before the work. An employee can accrue up to 160 hours; unused comp time must be paid out within 31 days after each 12-month period. Employers may cash out comp time over 80 hours with 30 days' notice, or stop offering comp time with 30 days' notice. Employees can withdraw from the agreement or request cash payment in writing at any time. Employers cannot intimidate or coerce employees regarding comp time choices. Upon termination, unused comp time must be paid at the higher of the regular rate when earned or the final regular rate.

Sec. 3, Remedies: An employer that violates the anti-coercion rules is liable for the compensation rate for each hour of accrued comp time plus an equal amount in liquidated damages, reduced by the rate for each hour of comp time used.

Sec. 4, Notice to employees: Within 30 days of enactment, the Secretary of Labor must update employer notice materials to reflect the new comp time rules.

Sec. 5, GAO report: The Comptroller General must report to Congress annually for 4 years, starting 2 years after enactment, on data about employer use of comp time, employee opt-in rates, complaints, enforcement actions, their outcomes, and any wages, damages, or remedies obtained.