Family Time Flexibility Act

WOCO Frank

Okay, I've read as much as I can about this proposed legislation. Now, somebody explain to me...

Why the heck would I want this to pass?

Trinity

Haven't heard much about this..fill us in?

WOCO Frank

I've been tracking it for awhile, but here's the latest... as e-mailed to me by SHRM.

__________________________________________________________

Issue:

H.R. 1119 would allow employers to offer and employees
to receive overtime payment in the form of time-and-a-half
or compensatory time off in lieu of cash payments.
Nonexempt employees who voluntarily choose paid compensatory
time off could accrue up to 160 hours of "comp time"
per year and would be compensated in cash for any unused
hours at the end of the year. Once eligible, employees
must expressly agree to the compensatory time off option
or else continue to receive overtime payment. Employers
would be strictly prohibited from coercing employees
into choosing the compensatory time off option over
the receipt of overtime payment.

Background:

In 1978, Congress passed the Federal Employees Flexible
and Compressed Work Schedules Act. While the Federal
Employees Flexible and Compressed Work Schedules Act
was passed as a trial program, it was reauthorized
in 1982 and made permanent in 1985. During that same
year, the choice to select compensatory time off in
lieu of overtime compensation was expanded to state
and local agencies and their employees.

Currently, only public sector employees have the option
to choose compensatory time off in lieu of overtime
compensation. H.R. 1119 would eliminate the disparity
between public and private sector nonexempt employees'
ability to accrue compensatory time off in lieu of
overtime compensation.
Please click here to view the SHRM Fact Sheet on Comp
Time: [url]http://messaging.shrm.org/ct/cdqYwx11XdaM/[/url]

System

Some nonexempts would rather have comp time than OT pay, and some employers would like it, too. Here's an article, "Comp time bill, rancor return in D.C." that explains some of it:
[url]http://www.hrhero.com/national/nationalnews.shtml[/url]

James Sokolowski
HRhero.com

valentine

This is the first I've heard of the Act -- but it seems that the company would be saving money by using the comp time instead of having to pay time and a half for overtime. I'm not sure I understand it, but it seems to be on the same idea of employers making employees exempt so they don't have to pay overtime.

I would think EE would like it in situations where they might not get a lot of time off. It would certainly give them more flexibility to use their time -- maybe increase their vacation or personal time.

WOCO Frank

In the context of our business, there are no significant cost savings. If I give Sally 90 minutes off instead of paying her 90 minutes OT, I still have to pay someone else to work that 90 minutes.

What I *would* get is a major scheduling headache. I think the most often presented reason for the act - government employees get it, so private employees should too - still offers no benefit to the employer. Yes, I think employees will love it. Employees would also love 18 paid holidays and 6 months paid vacation, but that doesn't make it good.

I've read a half-dozen or so summaries of the act, but I'm still looking for the first benefit for employers.

Hatchetman

There is no direct benefit to the employer.

Remember,FLSA was enacted 1) to increase the employed ranks by making overtime costly and 2) to stop abuses of employer is working their emloyees many, many hours, or not paying for work done on a claim that even though the emplyer required it be done, it wasn't work.

Once your realize that, you will see that any changes to FLSA as permitted by this proposed legilsation isn't going to do anything much for the employer.

I like the idea of letting the employee choose comp overtime or cash overtime --both at time and a half. The flexibility allows a more level playing field for the employee who, up to this time, was trapped by the whims of the employer in mandating overtime. While that won't change, the ability of the employee to chose cash or comptime may help alleviate any sting.

On the other hand, I am concerned that even though there is a provision prohibitng the employer from requiring the employee to take comp time instead of cash, I am still worried about the subtle pressures, the cajoling and the surreptitious threats that an employer can make to have the employee take the comp time. Until that is firmly resolved in the proposed legislation I tend to oppose it.

cebudragonlady

If the Act says Comp Time is accrued at 1 1/2 times the regular rate of pay, then when the employee takes the Comp Time - they must be paid at 1 1/2 times
the regular rate of pay. Is that correct ? Now, what happens when an employee
works over 12 hours in a day, and earns double-time...is the accrual at double time ? and Comp Time -when taken, is the employee then paid at double-time? What happens when an employee has Comp Time available, but quits or is fired before using the Time ?

I fail to see any benefits for the Employer...just another "arena" where lawsuits will spawn, grow and mutate!

Chari

WOCO Frank

What state mandates double-time? Thank goodness ours doesn't!

cebudragonlady

Double time is paid after 12 hours in a work day, and also for
time on the 7th consecutive day worked in a work week. When our employees
are on job site installing our product, they sometimes work every day for more than two weeks straight, and often for a lot more than 12 hours in a day.

Chari

WOCO Frank

Ouch.

Memo to self: Don't expand into Chari's state, whatever it is.

Trinity

I can see where this may cause scheduling conflicts for employers and how it really doesn't help them, but after you explained what it was and I read some on it, I don't necessarily think this is a bad thing. I mean we are always looking for ways to show our employees that we care about them as people and not juct computer drones, so whay not honor those who would prefer to spend time with family over more money? I look at countries in Europe where they take longer lunches and 6 week vacations are the norm and while they may not make the moola we make over here, they seem like content and happy folk. (Except maybe in France..)Maybe it's the new mommie in me, but I have always valued time off more than extra money..and hey..if you want to offer me a six month vacation..I'll take it! x:D

Leslie

What a payroll nightmare...I know they'd prefer the comp time but with about 1,000 employees, it's just flat out easier to pay the OT.

Now, our exempts who are asked to help out with special events, etc., we do comp.

Isn't double time after 12 a union thing?

HRsage

No, It's just a California thing.