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House Passes Changes to Overtime Rules

All clients of CBG Benefits are encouraged to log-in to the CBGconnect portal to download our Compliance Bulletin regarding potential changes to the rules about overtime and compensatory time off.On May 2, 2017, the House of Representatives passed the Working Families Flexibility Act (also known as H.R. 1180). H.R. 1180 still needs approval from the Senate and the executive branch before it becomes law.

However, to help our clients understand how this Act may potentially impact their business, we encourage you to log-in to the CBGconnect portal to download our full Compliance Bulletin about this topic.

Below is a brief summary regarding the potential impact of the Act:

  • Compensatory time off in lieu of overtime pay is currently not allowed for private employers; H.R. 1180 would allow private employers to offer compensatory time for eligible employees.
  • H.R. 1180 is proposing that compensatory time off be calculated at the rate of 1.5 hours of compensatory time off for every hour of overtime work. In addition, the bill would limit the amount of compensatory time off eligible employees may receive to 160 hours.
  • Employees would be eligible to receive compensatory time off after 1,000 hours of continuous employment during the previous 12 months.
  • Both employers and employees would have to agree to compensatory time off instead of overtime wages.

We will continue to monitor the progress of this bill through the legislative process and update you as more information becomes available. In the meantime, please be sure to download the full Compliance Bulletin from the CBGconnect portal.






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Posted in: Benefits and Insurance, Human Resources, Legislation

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