Luján: House Republican Bill Undermines Working Families

Press Release

Congressman Ben Ray Luján of New Mexico's Third District voted today against a House Republican bill that undermines working families by forcing them to choose between overtime pay and time off that they may never be able to take advantage of.

"This latest attack on workers' rights by House Republicans undermines the ability for workers to earn overtime pay that many families rely on," Congressman Luján said. "The deceptively named Working Families Flexibility Act is anything but -- instead it amounts to more work and less pay for working Americans. At a time when workers are struggling to get by and wages have been stagnant for the past decade, Congress should be focused on efforts to spur job creation, provide working Americans with more opportunities, and ensure family-friendly leave policies for workers."

The deceptively named Working Families Flexibility Act, H.R. 1406, gives employers the ability to offer compensatory time off in exchange for any overtime wages the worker has earned. Under current law, an hourly employee is paid at 1.5 times the rate of their wage for hours worked more than 40 hours in a week. Under this bill, however, the employer can take all of those wages earned above 40 hours and put them into a pot for future time off that is controlled by the employer. As a result, the worker would not get paid for work they perform during their current pay period. Unused time would be paid back at the end of the year, amounting to a no-interest loan to employers from workers.

In addition, H.R. 1406 gives employers the right to deny comp time requests. Effectively, workers will loan their overtime payment to their employer, interest-free, in the hopes of receiving paid time off in the future. In addition, employees could schedule excessive overtime hours and only offer overtime work to workers who agree to take comp time instead of overtime wages.

Republicans have tried numerous times to restrict workers' overtime and give employers rather than employees more flexibility. Similar legislation was rejected by Congress in 1996 and 1997, while the exact bill died in committee in 2003. President Obama has pledged to veto this bill. More than 160 organizations representing women, civil rights organizations, and labor unions have lined up in opposition to the legislation.

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