‘‘(B) in the case of employees who are not 
represented by a labor organization which has 
been certified or recognized as the representa-
tive of such employees under applicable law, an 
agreement arrived at between the employer and 
employee before the performance of the work 
and affirmed by a written or otherwise 
verifiable record maintained in accordance with 
section 11(c)— 
‘‘(i) in which the employer has offered 
and the employee has chosen to receive 
compensatory time in lieu of monetary 
overtime compensation; and 
‘‘(ii) entered into knowingly and vol-
untarily by such employees and not as a 
condition of employment. 
No employee may receive or agree to receive com-
pensatory time off under this subsection unless the 
employee has worked at least 1000 hours for the 
employee’s employer during a period of continuous 
employment with the employer in the 12-month pe-
riod before the date of agreement or receipt of com-
pensatory time off. 
‘‘(3) HOUR LIMIT.— 
VerDate Nov 24 2008 
06:42 Feb 11, 2009
Jkt 079200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H933.IH
H933
jbell on PROD1PC69 with BILLS
‘‘(A) MAXIMUM
HOURS.—An employee 
may accrue not more than 160 hours of com-
pensatory time. 
‘‘(B) COMPENSATION
DATE.—Not later 
than January 31 of each calendar year, the em-
ployee’s employer shall provide monetary com-
pensation for any unused compensatory time off 
accrued during the preceding calendar year 
which was not used prior to December 31 of the 
preceding year at the rate prescribed by para-
graph (6). An employer may designate and 
communicate to the employer’s employees a 12- 
month period other than the calendar year, in 
which case such compensation shall be provided 
not later than 31 days after the end of such 12- 
month period. 
‘‘(C) EXCESS
OF
HOURS.—The em-
ployer may provide monetary compensation for 
an employee’s unused compensatory time in ex-
cess of 80 hours at any time after giving the 
employee at least 30 days notice. Such com-
pensation shall be provided at the rate pre-
scribed by paragraph (6). 
‘‘(D) POLICY.—Except where a collective 
bargaining agreement provides otherwise, an 
VerDate Nov 24 2008 
06:42 Feb 11, 2009
Jkt 079200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H933.IH
H933
jbell on PROD1PC69 with BILLS
employer which has adopted a policy offering 
compensatory time to employees may dis-
continue such policy upon giving employees 30 
days notice. 
‘‘(E) WRITTEN
REQUEST.—An employee 
may withdraw an agreement described in para-
graph (2)(B) at any time. An employee may 
also request in writing that monetary com-
pensation be provided, at any time, for all com-
pensatory time accrued which has not yet been 
used. Within 30 days of receiving the written 
request, the employer shall provide the em-
ployee the monetary compensation due in ac-
cordance with paragraph (6). 
‘‘(4) PRIVATE
EMPLOYER
ACTIONS.—An em-
ployer which provides compensatory time under 
paragraph (1) to employees shall not directly or indi-
rectly intimidate, threaten, or coerce or attempt to 
intimidate, threaten, or coerce any employee for the 
purpose of— 
‘‘(A) interfering with such employee’s 
rights under this subsection to request or not 
request compensatory time off in lieu of pay-
ment of monetary overtime compensation for 
overtime hours; or 
VerDate Nov 24 2008 
06:42 Feb 11, 2009
Jkt 079200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H933.IH
H933
jbell on PROD1PC69 with BILLS
‘‘(B) requiring any employee to use such 
compensatory time. 
‘‘(5) TERMINATION OF EMPLOYMENT.—An em-
ployee who has accrued compensatory time off au-
thorized to be provided under paragraph (1) shall, 
upon the voluntary or involuntary termination of 
employment, be paid for the unused compensatory 
time in accordance with paragraph (6). 
‘‘(6) RATE OF COMPENSATION.— 
‘‘(A) GENERAL RULE.—If compensation is 
to be paid to an employee for accrued compen-
satory time off, such compensation shall be paid 
at a rate of compensation not less than— 
‘‘(i) the regular rate received by such 
employee when the compensatory time was 
earned; or 
‘‘(ii) the final regular rate received by 
such employee, 
whichever is higher. 
‘‘(B) CONSIDERATION OF PAYMENT.—Any 
payment owed to an employee under this sub-
section for unused compensatory time shall be 
considered unpaid overtime compensation. 
‘‘(7) USE OF TIME.—An employee— 
VerDate Nov 24 2008 
06:42 Feb 11, 2009
Jkt 079200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H933.IH
H933
jbell on PROD1PC69 with BILLS
‘‘(A) who has accrued compensatory time 
off authorized to be provided under paragraph 
(1); and 
‘‘(B) who has requested the use of such 
compensatory time, 
shall be permitted by the employee’s employer to use 
such time within a reasonable period after making 
the request if the use of the compensatory time does 
not unduly disrupt the operations of the employer. 
‘‘(8) DEFINITIONS.—The terms ‘overtime com-
pensation’ and ‘compensatory time’ shall have the 
meanings given such terms by subsection (o)(7).’’. 
SEC. 3. REMEDIES. 
Section 16 of the Fair Labor Standards Act of 1938 
(29 U.S.C. 216) is amended— 
(1) in subsection (b), by striking ‘‘(b) Any em-
ployer’’ and inserting ‘‘(b) Except as provided in 
subsection (f), any employer’’; and 
(2) by adding at the end the following: 
‘‘(f) An employer which violates section 7(r)(4) shall 
be liable to the employee affected in the amount of the 
rate of compensation (determined in accordance with sec-
tion 7(r)(6)(A)) for each hour of compensatory time ac-
crued by the employee and in an additional equal amount 
as liquidated damages reduced by the amount of such rate 
VerDate Nov 24 2008 
06:42 Feb 11, 2009
Jkt 079200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H933.IH
H933
jbell on PROD1PC69 with BILLS
of compensation for each hour of compensatory time used 
by such employee.’’. 
SEC. 4. NOTICE TO EMPLOYEES. 
Not later than 30 days after the date of the enact-
ment of this Act, the Secretary of Labor shall revise the 
materials the Secretary provides, under regulations pub-
lished in section 516.4 of title 29, Code of Federal Regula-
tions, to employers for purposes of a notice explaining the 
Fair Labor Standards Act of 1938 to employees so that 
such notice reflects the amendments made to such Act by 
this Act. 
SEC. 5. SUNSET. 
This Act and the amendments made by this Act shall 
expire 5 years after the date of the enactment of this Act. 
Æ 
VerDate Nov 24 2008 
06:42 Feb 11, 2009
Jkt 079200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6301
E:\BILLS\H933.IH
H933
jbell on PROD1PC69 with BILLS