IIB 
113TH CONGRESS 
1ST SESSION H. R. 1406 
IN THE SENATE OF THE UNITED STATES 
MAY 9, 2013 
Received; read twice and referred to the Committee on Health, Education, 
Labor, and Pensions 
AN ACT 
To amend the Fair Labor Standards Act of 1938 to provide 
compensatory time for employees in the private sector. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Working Families 
Flexibility Act of 2013’’. 
SEC. 2. COMPENSATORY TIME. 
Section 7 of the Fair Labor Standards Act of 1938 
(29 U.S.C. 207) is amended by adding at the end the fol-
lowing: 
‘‘(s) COMPENSATORY TIME OFF FOR PRIVATE EM-
PLOYEES.— 
‘‘(1) GENERAL RULE.—An employee may re-
ceive, in accordance with this subsection and in lieu 
of monetary overtime compensation, compensatory 
time off at a rate not less than one and one-half 
hours for each hour of employment for which over-
time compensation is required by this section. 
‘‘(2) CONDITIONS.—An employer may provide 
compensatory time to employees under paragraph 
(1)(A) only if such time is provided in accordance 
with— 
‘‘(A) applicable provisions of a collective 
bargaining agreement between the employer 
and the labor organization that has been cer-
tified or recognized as the representative of the 
employees under applicable law; or 
‘‘(B) in the case of employees who are not 
represented by a labor organization that has 
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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 1,000 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.— 
‘‘(A) MAXIMUM
HOURS.—An employee 
may accrue not more than 160 hours of com-
pensatory time. 
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‘‘(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 that 
was not used prior to December 31 of the pre-
ceding year at the rate prescribed by paragraph 
(6). An employer may designate and commu-
nicate 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 
employer that has adopted a policy offering 
compensatory time to employees may dis-
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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 that 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 that provides compensatory time under para-
graph (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 
‘‘(B) requiring any employee to use such 
compensatory time. 
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‘‘(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— 
‘‘(A) who has accrued compensatory time 
off authorized to be provided under paragraph 
(1); and 
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‘‘(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.—For purposes of this sub-
section— 
‘‘(A) the term ‘employee’ does not include 
an employee of a public agency; and 
‘‘(B) the terms ‘overtime compensation’ 
and ‘compensatory time’ shall have the mean-
ings 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 that violates section 7(s)(4) shall 
be liable to the employee affected in the amount of the 
rate of compensation (determined in accordance with sec-
tion 7(s)(6)(A)) for each hour of compensatory time ac-
crued by the employee and in an additional equal amount 
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as liquidated damages reduced by the amount of such rate 
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 enactment 
of this Act, the Secretary of Labor shall revise the mate-
rials the Secretary provides, under regulations published 
in section 516.4 of title 29, Code of Federal Regulations, 
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. GAO REPORT. 
Beginning 2 years after the date of enactment of this 
Act and each of the 3 years thereafter, the Comptroller 
General shall submit a report to Congress providing, with 
respect to the reporting period immediately prior to each 
such report— 
(1) data concerning the extent to which employ-
ers provide compensatory time pursuant to section 
7(s) of the Fair Labor Standards Act of 1938, as 
added by this Act, and the extent to which employ-
ees opt to receive compensatory time; 
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(2) the number of complaints alleging a viola-
tion of such section filed by any employee with the 
Secretary of Labor; 
(3) the number of enforcement actions com-
menced by the Secretary or commenced by the Sec-
retary on behalf of any employee for alleged viola-
tions of such section; 
(4) the disposition or status of such complaints 
and actions described in paragraphs (2) and (3); and 
(5) an account of any unpaid wages, damages, 
penalties, injunctive relief, or other remedies ob-
tained or sought by the Secretary in connection with 
such actions described in paragraph (3). 
SEC. 6. SUNSET. 
This Act and the amendments made by this Act shall 
expire 5 years after the date of enactment of this Act. 
Passed the House of Representatives May 8, 2013. 
Attest: 
KAREN L. HAAS, 
Clerk. 
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