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House set to OK bill to change overtime pay law

Published On: May 08 2013 12:35:21 PM CDT

The Republican-led House is poised to approve a bill that would give private sector workers the option of choosing paid time off instead of cash wages for working overtime.

The measure would allow employees who work more than 40 hours a week to save up their earned time off for use weeks or months later. GOP lawmakers say they want to give busy working parents at private firms the same flexibility that public sector workers have to take time off to spend with their children or care for aging parents.

Democrats and worker advocacy groups say it opens the door for employers to pressure workers not to take overtime pay. And they warn there is no guarantee workers would be able to take the extra time off when they want.

The bill is expected to pass Wednesday but has little chance in the Democratic-controlled Senate. President Barack Obama has threatened a veto, saying the bill would not prevent employers from slashing overtime hours and doesn't offer enough protection for workers who may not want to receive compensatory time off in lieu of overtime pay.

The measure is part of a broader Republican agenda aimed at expanding the party's political appeal by offering conservative ideas to help average Americans on issues like economic growth and job creation.

"It puts parents over politics," said House Majority Leader Eric Cantor, R-Va. He said the bill "makes sense" to help working moms and dads and gives them more flexibility with their hours at work to take care of family needs.

The plan would change the Fair Labor Standards Act of 1938, which requires covered employees to receive time-and-a-half pay for every hour over 40 within a work week. The proposal would allow workers to bank up to 160 hours of comp time per year that could be used to take time off for any reason.

Current law only allows private sector workers to swap comp time for overtime pay within a single pay period. The time can't be saved up for use later in the year.

The Republican bill would let employees decide to cash out their stored comp time at any point and forbids employers from coercing workers to take comp time instead of cash.

But Maryland Rep. Steny Hoyer, No. 2 Democrat in the House, said it's not fair to compare the legislation to similar flexibility that is offered to public sector employees because there are "a lot more protections" for public sector employees.

Opponents say the reason public sector workers were given the option to take time off instead of overtime pay in 1985 was to save cash-strapped governments money. They say that's why business groups are lobbying in favor of the bill, not to protect workers.

Critics also say the bill lets employers decide whether to grant a specific request to use comp time, so workers have no guarantee of when they could use the time. Even if workers can collect their unused time as cash at the end of the year, opponents argue that essentially gives employers an interest-free loan from employees.

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