Cost Estimate of H.R. Working Families Flexibility Act of 2025

Floor Speech

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Mr. WALBERG. Mr. Speaker, I include in the Record the following cost estimate for H.R. 2870, Working Families Flexibility Act of 2025, prepared by the Congressional Budget Office, and was not made available to the Committee on Education and Workforce at the time of the filing of the legislative report. H.R. 2870, WORKING FAMILIES FLEXIBILITY ACT OF 2025, AS REPORTED BY THE HOUSE COMMITTEE ON EDUCATION AND THE WORKFORCE ON FEBRUARY 12, 2026 ------------------------------------------------------------------------ By fiscal year, millions of dollars-- ----------------------------------- 2026 2026-2031 2026-2036 ------------------------------------------------------------------------ Direct Spending (Outlays)........... 0 0 0 Revenues............................ 0 0 0 Increase or Decrease (-) in the 0 0 0 Deficit............................ Spending Subject to Appropriation * 3 ** (Outlays).......................... ------------------------------------------------------------------------ * = between zero and $500,000. ** = not estimated.

Increases net direct spending in any of the four consecutive 10-year periods beginning in 2037? No.

Increases on-budget deficits in any of the four consecutive 10-year periods beginning in 2037? No.

Statutory pay-as-you-go procedures apply? No.

Mandate Effects:

Contains intergovernmental mandate? No.

Contains private-sector mandate? No.

H.R. 2870 would amend the Fair Labor Standards Act of 1938 (FLSA) to temporarily allow private-sector employees to receive compensatory time off in lieu of overtime pay. Employees could receive such compensatory time off at a rate of not less than one and one-half hours for each hour of employment for which overtime pay would otherwise have been required. Such compensatory time could be provided only in accordance with a collective bargaining agreement or with the consent of affected employees during the 5-year period after enactment of the bill.

Using information from the Department of Labor (DOL), CBO estimates that implementing the bill would require the department to issue a rule on compensatory time off, train headquarters and regional staff on the new policy, and update FLSA materials provided to employers. Using information on the cost of similar activities, CBO estimates that the cost to DOL would total $2 million over the 2026-2031 period.

H.R. 2870 also would require the Government Accountability Office (GAO) to report to the Congress annually on the extent to which employers provide such compensatory time, the number of alleged violations and the disposition of those complaints, including any enforcement actions. Using information on the cost of similar activities conducted by GAO, CBO estimates that producing those reports would cost $1 million over the 2026-2031 period.

In total, CBO estimates that implementing H.R. 2870 would cost $3 million over the 2026-2031 period; such spending would be subject to the availability of appropriated funds.

The CBO staff contact for this estimate is Justin Latus. The estimate was reviewed by Christina Hawley Anthony, Deputy Director of Budget Analysis. Phillip L. Swagel, Director, Congressional Budget Office.

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