On 20 November, the US House of Representatives Committee on Education and Workforce passed two Republican-backed bills that would allow employers to compensate overtime with paid time off and avoid penalties for unpaid wages.
The first bill would allow employers to compensate overtime not with pay – normally at least 1.5 times the base rate – but with paid leave. Employees would accrue 1.5 hours of paid time off for each hour of overtime worked, up to a maximum of 160 hours per year. This arrangement would be permitted only where a collective agreement exists or where the individual employee agrees.
Adopted by the same committee, the second bill would allow employers to avoid penalties for wage deductions if they pro
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Article authors
Antoine Piel
Section Head at Mind HR