Recently, the U.S. House of Representatives passed a law that allows private-sector employers to allow employees to earn Paid Time Off (PTO) instead of overtime pay. H.R. 1180, the Working Families Flexibility Act of 2017, amends the Fair Labor Standards Act of 1938. Under the act, an employee may receive “compensatory time off at a rate not less than one and one-half hours” for each hour of work that overtime pay is required. This means that, instead of receiving overtime pay in their next paycheck, an employee may earn PTO that they may use at a later date that is approved by the employer.
In November 2014, employees of Alice’s Tea Cup LLC, a Manhattan café chain alleged that during their employment, they were not paid overtime for days when they worked more than 10 hours. Alice’s Tea Cup has three locations in New York City.
Recently, the New York Post reported that Bloomberg, a financial media company, has agreed to pay $3.2 million in a settlement for overtime wages. The Manhattan federal class-action lawsuit was initiated by customer service employees who claimed they were not compensated for overtime.
Attorney Steven Mitchell Sack, “The Employee’s Lawyer,” says a new workplace regulation proposed by President Barack Obama to automatically qualify workers for overtime pay would mean those who work more than 40 hours a week will be fairly compensated.