H.R. 2870 · On the floor · Labor and Employment

Working Families Flexibility Act of 2025

What it does

Amends the Fair Labor Standards Act to allow private-sector employees to receive compensatory time off at a rate of at least 1.5 hours per hour of overtime work instead of monetary compensation, but only if the employee and employer agree in writing.
Limits employee accumulation of compensatory time to 160 hours, requires employers to pay out unused compensatory time within 31 days after each calendar year or employer-defined 12-month period at the employee's regular rate, and allows employers to pay out hours exceeding 80 hours with 30 days notice.
Prohibits employers from intimidating, threatening, or coercing employees to accept or use compensatory time and guarantees employees the right to withdraw from compensatory-time agreements and request cash payment in writing.
Requires employers to allow employees to use accrued compensatory time within a reasonable period upon request if doing so does not unduly disrupt operations, and mandates payment at termination for all unused compensatory time at the regular rate when earned or the final regular rate, whichever is higher.
Directs the Secretary of Labor to revise FLSA notice materials within 30 days of enactment to reflect the compensatory-time provisions and requires the Comptroller General to report annually to Congress for 4 years on the prevalence and effects of compensatory-time arrangements.

Feb 12, 2026: Placed on the Union Calendar, Calendar No. 422.

Committee: House Education and Workforce