Fair Labor Standards Amendments of 1985
PL 99-150 (S.1570), enacted 11/13/1985

PUBLIC LAW 99-150—NOV. 13, 1985 
99 STAT. 787 
Public Law 99-150 
99th Congress 
An Act 
To amend the Fair Labor Standards Act of 1938 to authorize the provision of 
compensatory time in lieu of overtime compensation for employees of States, 
Nov. 13, 1985 
political subdivisions of States, and interstate governmental agencies, to clarify the 
[S. 1570] 
application of the Act to volunteers, and for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
Fair Labor 
Standards 
SHORT TITLE; REFERENCE TO ACT 
,Ajnendments of 
SECTION 1. (a) SHORT TITLE.—This Act may be cited as the "Fair 
29 use 201 note. 
Labor Standards Amendments of 1985". 
(b) REFERENCE TO ACT.—Whenever in this Act an amendment or 
repeal is expressed in terms of an amendment to, or repeal of, a 
section or other provision, the reference shall be considered to be a 
reference to a section or other provision of the Fair Labor Standards 
Act of 1938. 
29 use 201 et 
COMPENSATORY TIME 
*^^ 
SEC. 2. (a) COMPENSATORY TIME.—Section 7 (29 U.S.C. 207) is 
amended by adding at the end the following: 
"(oXD Employees of a public agency which is a State, a political 
subdivision of a State, or an interstate governmental agency may 
receive, in accordance with this subsection and in lieu of overtime 
compensation, compensatory time off at a rate not less than one and 
one-half hours for each hour of employment for which overtime 
compensation is required by this section. 
"(2) A public agency may provide compensatory time under para-
graph (1) only— 
"(A) pursuant to— 
"(i) applicable provisions of a collective bargaining agree-
ment, memorandum of understanding, or any other agree-
ment between the public agency and representatives of 
such employees; or 
"(ii) in the case of employees not covered by subclause (i), 
an agreement or understanding arrived at between the 
employer and employee before the performance of the 
work; and 
"(B) if the employee has not accrued compensatory time in 
excess of the limit applicable to the employee prescribed by 
paragraph (3). 
In the C£ise of employees described in clause (AXii) hired prior to 
April 15, 1986, the regular practice in effect on April 15, 1986, with 
respect to compensatory time off for such employees in lieu of the 
receipt of overtime compensation, shall constitute an agreement or 
understsmding under such clause (AXii). Except as provided in the 
previous sentence, the provision of compensatory time off to such 
employees for hours worked after April 14, 1986, shall be in accord-
ance with this subsection. 
99 STAT. 788 
PUBLIC LAW 99-150—NOV. 13, 1985 
"(3XA) If the work of an employee for which compensatory time 
may be provided included work in a public safety activity, an 
emergency response activity, or a seasonal activity, the employee 
engaged in such work may accrue not more than 480 hours of 
compensatory time for hours worked after April 15, 1986. If such 
work was any other work, the employee engaged in such work may 
accrue not more than 240 hours of compensatory time for hours 
worked after April 15, 1986. Any such employee who, after April 15, 
1986, has accrued 480 or 240 hours, as the case may be, of compen-
satory time off shall, for additional overtime hours of work, be paid 
overtime compensation. 
"(B) If compensation is paid to an employee for accrued compen-
satory time off, such compensation shall be paid at the regular rate 
earned by the employee at the time the employee receives such 
payment. 
"(4) An employee who has accrued compensatory time off 
authorized to be provided under paragraph (1) shall, upon termi-
nation of employment, be paid for the unused compensatory time at 
a rate of compensation not less than— 
"(A) the average regular rate received by such employee 
during the last 3 years of the employee's employment, or 
"(B) the final regular rate received by such employee, 
whichever is higher 
"(5) An employee of a public agency which is a State, political 
subdivision of a State, or an interstate governmental agency— 
"(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 
public agency. 
"(6) For purposes of this subsection— 
"(A) the term 'overtime compensation' means the compensa-
tion required by subsection (a), and 
"(B) the terms 'compensatory time' and 'compensatory time 
off mean hours during which an employee is not working, 
which are not counted as hours worked during the applicable 
workweek or other work period for purposes of overtime com-
pensation, and for which the employee is compensated at the 
employee's regular rate.". 
29 u s e 207 note. 
ft)) 
EXISTING COLLECTIVE BARGAINING AGREEMENTS.—A Collective 
bargaining agreement which is in effect on April 15,1986, and which 
permits compensatory time off in lieu of overtime compensation 
shall remain in effect until its expiration date unless otherwise 
modified, except that compensatory time shall be provided after 
April 14, 1986, in accordance with section 7(o) of the Fair Labor 
Ante, p. 787. 
Standards Act of 1938 (as added by subsection (a)). 
29 u s e 216 note. 
(c) LIABILITY AND DEFERRED PAYMENT.—(1) N o State, 
political 
subdivision of a State, or interstate governmental agency shall be 
29 use 216. 
liable under section 16 of the Fair Labor Standards Act of 1938 for a 
29 use 206. 
violation of section 6 (in the case of a territory or possession of the 
Ante, p. 787; 
United States), 7, or 11(c) (as it relates to section 7) of such Act 
post, p. 789. 
occurring before April 15,1986, with respect to any employee of the 
State, political subdivision, or agency who would not have been 
covered by such Act under the Secretary of Labor's special enforce-
PUBLIC LAW 99-150—NOV. 13, 1985 
99 STAT. 789 
ment policy on January 1, 1985, and published in sections 775.2 and 
775.4 of title 29 of the Code of Federal Regulations. 
(2) A State, political subdivision of a State, or interstate govern- 
29 USC 207 note. 
mental agency may defer until August 1, 1986, the payment of 
monetary overtime compensation under section 7 of the Fair Labor 
Standards Act of 1938 for hours worked after April 14,1986. 
Ante, p. 787; 
infra. 
SPECIAL DETAILS, OCCASIONAL OR SPORADIC EMPLOYMENT, AND 
SUBSTITUTION 
SEC 3. (a) SPECIAL DETAIL WORK FOR FIRE PROTECTION AND LAW 
ENFORCEMENT EMPLOYEES.—Section 7 (29 U.S.C. 207) is amended by 
Ante, p. 787. 
adding after subsection (o) (added by section 2) the following: 
"(p)(l) If an individual who is employed by a State, political 
subdivision of a State, or an interstate governmental agency in fire 
protection or law enforcement activities (including activities of secu-
rity personnel in correctional institutions) and who, solely at such 
individual's option, agrees to be employed on a special detail by a 
separate or independent employer in fire protection, law enforce-
ment, or related activities, the hours such individual was employed 
by such separate and independent employer shall be excluded by the 
public agency emplojdng such individual in the calculation of the 
hours for which the employee is entitled to overtime compensation 
under this section if the public agency— 
"(A) requires that its employees engaged in fire protection, 
law enforcement, or security activities be hired by a separate 
and independent employer to perform the special detail, 
' 
"(B) facilitates the employment of such employees by a sepa-
rate and independent employer, or 
"(C) otherwise affects the condition of employment of such 
employees by a separate and independent employer.". 
(b) OCCASIONAL OR SPORADIC EMPLOYMENT.—Section 7(p) (29 U.S.C. 
207), as added by subsection (a), is amended by adding at the end the Supra. 
following: 
"(2) If an employee of a public agency which is a State, political 
subdivision of a State, or an interstate governmental agency under-
takes, on an occasional or sporadic basis and solely at the employee's 
option, part-time employment for the public agency which is in a 
different capacity from any capacity in which the employee is 
regularly employed with the public agency, the hours such employee 
was employed in performing the different employment shall be 
excluded by the public agency in the calculation of the hours for 
which the employee is entitled to overtime compensation under this 
section.". 
(c) SUBSTITUTION.—(1) Section 7(p) (29 U.S.C. 207), as amended by 
subsection (b), is amended by adding at the end the following: 
"(3) If an individual who is employed in any capacity by a public 
agency which is a State, political subdivision of a State, or an 
interstate governmental agency, agrees, with the approval of the 
public agency and solely at the option of such individual, to sub-
stitute during scheduled work hours for another individual who is 
employed by such agency in the same capacity, the hours such 
employee worked as a substitute shall be excluded by the public 
agency in the calculation of the hours for which the employee is 
entitled to overtime compensation under this section.". 
(2) Section 11(c) (29 U.S.C. 211(c)) is amended by adding at the end 
the following: "The employer of an employee who performs sub-
m 
99 STAT. 790 
PUBLIC LAW 99-150—NOV. 13, 1985 
Ante, p. 789. 
stitute work described in section 7(p)(3) may not be required under 
this subsection to keep a record of the hours of the substitute 
work.". 
VOLUNTEERS 
SEC. 4. (a) DEFINITION.—Section 3(e) (29 U.S.C. 203(e)) is 
amended— 
(1) by striking out "paragraphs (2) and (3)" in paragraph (1) 
and inserting in lieu thereof "paragraphs (2), (3), and (4)", and 
(2) by adding at the end the following: 
"(4)(A) The term 'employee' does not include any individual who 
volunteers to perform services for a public agency which is a State, a 
political subdivision of a State, or an interstate governmental 
agency, if— 
"(i) the individual receives no compensation or is paid 
expenses, reasonable benefits, or a nominal fee to perform the 
services for which the individual volunteered; and 
"(ii) such services are not the same type of services which the 
individual is employed to perform for such public agency. 
"(B) An employee of a public agency which is a State, political 
subdivision of a State, or an interstate governmental agency may 
volunteer to perform services for any other State, political subdivi-
sion, or interstate governmental agency, including a State, political 
subdivision or agency with which the employing State, political 
subdivision, or agency has a mutual aid agreement.". 
29 use 203 note. 
(b) REGULATIONS.—Not later than March 15,1986, the Secretary of 
Labor shall issue regulations to carry out paragraph (4) of section 
3(e) (as amended by subsection (a) of this section). 
29 use 203 note. 
(c) CURRENT PRACTICE.—If, before April 15, 1986, the practice of a 
public agency was to treat certain individuals as volunteers, such 
individuals shall until April 15, 1986, be considered, for purposes of 
29 use 201 et 
the Fair Labor Standards Act of 1938, as volunteers and not £is 
s«9- 
employees. No public agency which is a State, a political subdivision 
of a State, or an interstate governmental agency shall be liable for a 
violation of section 6 occurring before April 15, 1986, with respect to 
services deemed by that agency to have been performed for it by an 
individual on a voluntary basis. 
STATE AND LOCAL LEGISLATIVE EMPLOYEES 
SEC. 5. Clause (ii) of section 3(eX2)(C) (29 U.S.C. 203(eX2XC)) is 
amended— 
(1) by striking out "or" at the end of subclause (III), 
(2) by striking out "who" in subclause (IV), 
(3) by striking out the period at the end of subclause (IV) and 
inserting in lieu thereof ", or", and 
(4) by adding after subclause (IV) the following: 
"(V) is an employee in the legislative branch or legisla-
tive body of that State, political subdivision, or agency and 
is not employed by the legislative library of such State, 
political subdivision, or agency.". 
EFFECTIVE DATE 
29 use 203 note. 
SEC. 6. The amendments made by this Act shall take effect 
Regulations. 
April 15, 1986. The Secretary of Labor shall before such date pro-
mulgate such regulations as may be required to implement such 
amendments. 
PUBLIC LAW 99-150-NOV. 13, 1985 
99 STAT. 791 
EFFECT OF AMENDMENTS 
SEC. 7. The amendments made by this Act shall not affect whether 
a public agency which is a State, political subdivision of a State, or 
an interstate governmental agency is liable under section 16 of the 
Fair Labor Standards Act of 1938 for a violation of section 6, 7, or 11 
of such Act occurring before April 15, 1986, with respect to any 
employee of such public agency who would have been covered by 
such Act under the Secretary of Labor's special enforcement policy 
on January 1, 1985, and published in section 775.3 of title 29 of the 
Code of Federal Regulations. 
29 u s e 216 note. 
29 u s e 216. 
29 u s e 206. 
Ante, pp. 787, 
789. 
29 u s e 211. 
DISCRIMINATION 
SEC. 8. A public agency which is a State, political subdivision of a 
State, or an interstate governmental agency and which discrimi-
nates or has discriminated against an employee with respect to the 
employee's wages or other terms or conditions of employment 
because on or after February 19, 1985, the employee asserted cov-
erage under section 7 of the Fair Labor Standards Act of 1938 shall 
be held to have violated section 15(a)(3) of such Act. The protection 
against discrimination afforded by the preceding sentence shall be 
available after August 1, 1986, only for an employee who takes an 
action described in section 15(a)(3) of such Act. 
Approved November 13, 1985. 
29 u s e 215 note. 
Ante, pp. 787, 
789. 
29 u s e 215. 
Tsm 
LEGISLATIVE HISTORY—S. 1570 (H.R. 3530): 
HOUSE REPORTS: No. 99-331 accompanying H.R. 3530 (eomm. on Education and 
Labor) and No. 99-357 (Comm. of eonference). 
SENATE REPORT No. 99-159 (eomm. on Labor and Human Resources). 
CONGRESSIONAL RECORD, Vol. 131 (1985): 
Oct. 24, considered and passed Senate. 
Oct. 28, H.R. 3530 considered and peissed House; S. 1570, amended, passed in 
lieu. 
Nov. 7, House and Senate agreed to conference report.