Bill would let private employers offer paid time off instead of overtime pay

What does this do?

This bill lets private-sector employers offer hourly employees the option to bank overtime hours as paid time off (comp time) instead of receiving time-and-a-half wages, at the same 1.5-hour rate. Employees must agree voluntarily and in writing, and must have worked at least 1,000 hours for the employer in the past year. Workers can accumulate up to 160 comp-time hours, request cash payout anytime, and must be paid out unused time in cash upon leaving the job or at year's end limits.

Who does it affect?

This affects hourly, non-government workers eligible for overtime pay and the private employers who choose to offer this option; unionized workplaces negotiate it separately. Public-sector employees are not affected, since they already have similar comp-time rules.

Why does it matter?

Employers would gain a new payroll option, shifting some overtime compensation from immediate cash wages to deferred paid time off, with rules meant to prevent pressure on workers and ensure eventual cash payout. The changes would expire after five years unless Congress renews them.

Where does it stand?