Working Families Flexibility Act of 2025

Flexibility in Compensation: Employees may receive compensatory time off at a rate of at least one and one-half hours for each hour of overtime worked, providing an alternative to cash payments (Section 2, paragraph 1).

Employee Choice and Control: For employees not represented by a labor organization, the agreement to receive compensatory time must be made knowingly and voluntarily, and it cannot be a condition of employment (Section 2, paragraph 2, B).

Ability to Revert to Cash: Employees have the right to withdraw their agreement to receive compensatory time at any time and can request in writing to be paid monetary compensation for all accrued time (Section 2, paragraph 3, E).

Protection Against Coercion: The law prohibits employers from using intimidation, 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, paragraph 4).

Financial Security upon Leaving a Job: If an employee leaves their job, whether voluntarily or involuntarily, the employer must pay them for any unused compensatory time (Section 2, paragraph 5).

Accrual Limitations: There is a cap on how much compensatory time an employee can accumulate, with a limit of 160 hours (Section 2, paragraph 3, A).

Strict Eligibility Requirements: Employees are not eligible to receive compensatory time unless they have worked at least 1,000 hours for the employer during a continuous 12-month period (Section 2, paragraph 2).

Restriction on Time Usage: An employer can choose to permit the use of compensatory time only if the request does not unduly disrupt the operations of the business (Section 2, paragraph 7).

Limited Duration of Law: The Act and its amendments are set to expire five years after the date of enactment (Section 6).