Working Families Flexibility Act of 2025

Flexibility in Compensation: Eligible employees may choose to receive compensatory time off at a rate of at least one and one-half hours for every hour of overtime worked, rather than receiving cash payments (Section 2, subsection (t)(1)(A)).

Employee Protections against Intimidation: The bill prohibits employers from using threats or coercion to interfere with an employee's right to request or decline compensatory time, or to force them to use it (Section 2, subsection (t)(4)).

Right to Withdraw or Request Cash: Employees who have an agreement can submit a written request at any time to withdraw from the agreement or to ask for monetary compensation for their accrued time (Section 2, subsection (t)(3)(E)).

Protection of Accrued Value: Upon the termination of employment, whether voluntary or involuntary, employees are entitled to be paid for any unused accrued compensatory time (Section 2, subsection (t)(5)).

Legal Remedies for Violations: If an employer violates the rules regarding intimidation or coercion, they may be liable for the rate of compensation plus an additional amount in liquidated damages (Section 3).

Accrual Limits: There is a cap on how much compensatory time an employee can accumulate, which is a maximum of 160 hours (Section 2, subsection (t)(3)(A)).

Restrictions on Eligibility: Only employees who have worked at least 1,000 hours during a continuous 12-month period are eligible to participate in this program (Section 2, subsection (t)(1)(B)(ii)).

Employer Ability to Stop Policy: An employer can choose to stop offering compensatory time by giving employees a 30-day notice, provided they pay out any accrued, unused time (Section 2, subsection (t)(3)(D)).

Potential Disruption of Time Use: An employer is permitted to limit the use of requested compensatory time if the employee's absence would unduly disrupt the employer's operations (Section 2, subsection (t)(7)).