[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 4 Reported in Senate (RS)]





                                                        Calendar No. 32

105th CONGRESS

  1st Session

                                  S. 4

                          [Report No. 105-11]

_______________________________________________________________________

                                 A BILL

  To amend the Fair Labor Standards Act of 1938 to provide to private 
      sector employees the same opportunities for time-and-a-half 
compensatory time off, biweekly work programs, and flexible credit hour 
   programs as Federal employees currently enjoy to help balance the 
    demands and needs of work and family, to clarify the provisions 
 relating to exemptions of certain professionals from the minimum wage 
and overtime requirements of the Fair Labor Standards Act of 1938, and 
                          for other purposes.

_______________________________________________________________________

                             April 2, 1997

 Reported under the authority of the order of the Senate on March 27, 
                         1997, with amendments





                                                        Calendar No. 32
105th CONGRESS
  1st Session
                                  S. 4

                          [Report No. 105-11]

  To amend the Fair Labor Standards Act of 1938 to provide to private 
      sector employees the same opportunities for time-and-a-half 
compensatory time off, biweekly work programs, and flexible credit hour 
   programs as Federal employees currently enjoy to help balance the 
    demands and needs of work and family, to clarify the provisions 
 relating to exemptions of certain professionals from the minimum wage 
and overtime requirements of the Fair Labor Standards Act of 1938, and 
                          for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 21, 1997

 Mr. Ashcroft (for himself, Mrs. Hutchison, Mr. Lott, Mr. Nickles, Mr. 
Craig, Ms. Collins, Mr. DeWine, Mr. Allard, Mr. Brownback, Mr. Chafee, 
Mr. Coats, Mr. Domenici, Mr. Enzi, Mr. Faircloth, Mr. Gramm, Mr. Grams, 
Mr. Grassley, Mr. Hagel, Mr. Hatch, Mr. Helms, Mr. Hutchinson, Mr. Kyl, 
Mr. Murkowski, Mr. Roberts, Mr. Sessions, Mr. Thurmond, Mr. Warner, Mr. 
  Coverdell, Mr. Jeffords, Mr. Mack, Mr. Smith of New Hampshire, Mr. 
    McCain, Mr. Cochran, Mr. Burns, Mr. McConnell, and Mr. Thomas) 
introduced the following bill; which was read twice and referred to the 
                 Committee on Labor and Human Resources

                             April 2, 1997

 Reported under the authority of the order of the Senate on March 27, 
                 1997, by Mr. Jeffords, with amendments
  [Omit the part struck through and insert the part printed in italic]

_______________________________________________________________________

                                 A BILL


 
  To amend the Fair Labor Standards Act of 1938 to provide to private 
      sector employees the same opportunities for time-and-a-half 
compensatory time off, biweekly work programs, and flexible credit hour 
   programs as Federal employees currently enjoy to help balance the 
    demands and needs of work and family, to clarify the provisions 
 relating to exemptions of certain professionals from the minimum wage 
and overtime requirements of the Fair Labor Standards Act of 1938, and 
                          for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Family Friendly Workplace Act''.

SEC. 2. PURPOSES.

    The purposes of this Act are--
            (1) to assist working people in the United States;
            (2) to balance the demands of workplaces with the needs of 
        families;
            (3) to provide such assistance and balance such demands by 
        allowing employers to offer compensatory time off, which 
        employees may voluntarily elect to receive, and to establish 
        biweekly work programs and flexible credit hour programs, in 
        which employees may voluntarily participate; and
            (4) to give private sector employees the same benefits of 
        compensatory time off, biweekly work schedules, and flexible 
        credit hours as have been enjoyed by Federal Government 
        employees since 1978.

SEC. 3. WORKPLACE FLEXIBILITY OPTIONS.

<DELETED>    (a) Compensatory Time Off.--</DELETED>
        <DELETED>    (1) In general.--Section 7 of the Fair Labor 
        Standards Act of 1938 (29 U.S.C. 207) is amended by adding at 
        the end the following:</DELETED>
<DELETED>    ``(r) Compensatory Time Off for Private Employees.--
</DELETED>
        <DELETED>    ``(1) General rule.--</DELETED>
                <DELETED>    ``(A) Compensatory time off.--An employee 
                may receive, in accordance with this subsection and in 
                lieu of monetary overtime compensation, compensatory 
                time off at a rate not less than one and one-half hours 
                for each hour of employment for which monetary overtime 
                compensation is required by this section.</DELETED>
                <DELETED>    ``(B) Definition.--For purposes of this 
                subsection, the term `employee' does not include an 
                employee of a public agency.</DELETED>
        <DELETED>    ``(2) Conditions.--An employer may provide 
        compensatory time off to employees under paragraph (1)(A) only 
        pursuant to the following:</DELETED>
                <DELETED>    ``(A) Such time may be provided only in 
                accordance with--</DELETED>
                        <DELETED>    ``(i) applicable provisions of a 
                        collective bargaining agreement between the 
                        employer and the representative of the 
                        employees recognized as provided in section 
                        9(a) of the National Labor Relations Act (29 
                        U.S.C. 159(a)); or</DELETED>
                        <DELETED>    ``(ii) in the case of employees 
                        who are not represented by a labor organization 
                        recognized as provided in section 9(a) of the 
                        National Labor Relations Act, an agreement or 
                        understanding arrived at between the employer 
                        and employee before the performance of the work 
involved if such agreement or understanding was entered into knowingly 
and voluntarily by such employee and was not a condition of 
employment.</DELETED>
                <DELETED>    ``(B) If such employee has affirmed, in a 
                written or otherwise verifiable statement that is made, 
                kept, and preserved in accordance with section 11(c), 
                that the employee has chosen to receive compensatory 
                time off in lieu of monetary overtime 
                compensation.</DELETED>
                <DELETED>    ``(C) If the employee has not accrued 
                compensatory time off in excess of the limit applicable 
                to the employee prescribed by paragraph (3).</DELETED>
        <DELETED>    ``(3) Hour limit.--</DELETED>
                <DELETED>    ``(A) Maximum hours.--An employee may 
                accrue not more than 240 hours of compensatory time 
                off.</DELETED>
                <DELETED>    ``(B) Compensation date.--Not later than 
                January 31 of each calendar year, the employee's 
                employer shall provide monetary compensation for any 
                unused compensatory time off accrued during the 
                preceding calendar year that was not used prior to 
                December 31 of the preceding calendar year at the rate 
                prescribed by paragraph (6). An employer may designate 
                and communicate to the employees of the employer a 12-
                month period other than the calendar year, in which 
                case such compensation shall be provided not later than 
                31 days after the end of such 12-month 
                period.</DELETED>
                <DELETED>    ``(C) Excess of 80 hours.--The employer 
                may provide monetary compensation for an employee's 
                unused compensatory time off in excess of 80 hours at 
                any time after giving the employee at least 30 days' 
                notice. Such compensation shall be provided at the rate 
                prescribed by paragraph (6).</DELETED>
                <DELETED>    ``(D) Policy.--An employer that has 
                adopted a policy offering compensatory time off to 
                employees may discontinue such policy upon giving 
                employees 30 days' notice.</DELETED>
                <DELETED>    ``(E) Written request.--An employee may 
                withdraw an agreement or understanding described in 
                paragraph (2)(A)(ii) at any time. An employee may also 
                request in writing that monetary compensation be 
                provided, at any time, for all compensatory time off 
                accrued that has not yet been used. Within 30 days 
                after receiving the written request, the employer shall 
                provide the employee the monetary compensation due in 
                accordance with paragraph (6).</DELETED>
        <DELETED>    ``(4) Prohibition of coercion.--</DELETED>
                <DELETED>    ``(A) In general.--An employer that 
                provides compensatory time off under paragraph (1) to 
                employees shall not directly or indirectly intimidate, 
                threaten, or coerce, or attempt to intimidate, 
                threaten, or coerce, any employee for the purpose of--
                </DELETED>
                        <DELETED>    ``(i) interfering with the rights 
                        of the employee under this subsection to 
                        request or not request compensatory time off in 
                        lieu of payment of monetary overtime 
                        compensation for overtime hours; or</DELETED>
                        <DELETED>    ``(ii) requiring the employee to 
                        use such compensatory time off.</DELETED>
                <DELETED>    ``(B) Definition.--As used in subparagraph 
                (A), the term `intimidate, threaten, or coerce' has the 
                meaning given the term in section 
                13A(d)(3)(B).''.</DELETED>
        <DELETED>    (2) Remedies and sanctions.--Section 16 of the 
        Fair Labor Standards Act of 1938 (29 U.S.C. 216) is amended--
        </DELETED>
                <DELETED>    (A) in subsection (b), by striking ``(b) 
                Any employer'' and inserting ``(b) Except as provided 
                in subsection (f), any employer''; and</DELETED>
                <DELETED>    (B) by adding at the end the 
                following:</DELETED>
<DELETED>    ``(f)(1) An employer that violates section 7(r)(4) shall 
be liable to the employee affected in an amount equal to--</DELETED>
        <DELETED>    ``(A) the product of--</DELETED>
                <DELETED>    ``(i) the rate of compensation (determined 
                in accordance with section 7(r)(6)(A)); and</DELETED>
                <DELETED>    ``(ii)(I) the number of hours of 
                compensatory time off involved in the violation that 
                was initially accrued by the employee; minus</DELETED>
                <DELETED>    ``(II) the number of such hours used by 
                the employee; and</DELETED>
        <DELETED>    ``(B) as liquidated damages, the product of--
        </DELETED>
                <DELETED>    ``(i) such rate of compensation; 
                and</DELETED>
                <DELETED>    ``(ii) the number of hours of compensatory 
                time off involved in the violation that was initially 
                accrued by the employee.</DELETED>
<DELETED>    ``(2) The employer shall be subject to such liability in 
addition to any other remedy available for such violation under this 
section or section 17, including a criminal penalty under subsection 
(a) and a civil penalty under subsection (e).''.</DELETED>
        <DELETED>    (3) Calculations and special rules.--Section 7(r) 
        of the Fair Labor Standards Act of 1938 (29 U.S.C. 207(r)), as 
        added by paragraph (1), is amended by adding at the end the 
        following:</DELETED>
        <DELETED>    ``(5) Termination of employment.--An employee who 
        has accrued compensatory time off authorized to be provided 
        under paragraph (1) shall, upon the voluntary or involuntary 
        termination of employment, be paid for the unused compensatory 
        time off in accordance with paragraph (6).</DELETED>
        <DELETED>    ``(6) Rate of compensation for compensatory time 
        off.--</DELETED>
                <DELETED>    ``(A) General rule.--If compensation is to 
                be paid to an employee for accrued compensatory time 
                off, such compensation shall be paid at a rate of 
                compensation not less than--</DELETED>
                        <DELETED>    ``(i) the regular rate received by 
                        such employee when the compensatory time off 
                        was earned; or</DELETED>
                        <DELETED>    ``(ii) the final regular rate 
                        received by such employee,</DELETED>
                <DELETED>whichever is higher.</DELETED>
                <DELETED>    ``(B) Consideration of payment.--Any 
                payment owed to an employee under this subsection for 
                unused compensatory time off shall be considered unpaid 
                monetary overtime compensation.</DELETED>
        <DELETED>    ``(7) Use of time.--An employee--</DELETED>
                <DELETED>    ``(A) who has accrued compensatory time 
                off authorized to be provided under paragraph (1); 
                and</DELETED>
                <DELETED>    ``(B) who has requested the use of such 
                compensatory time off,</DELETED>
        <DELETED>shall be permitted by the employer of the employee to 
        use such time within a reasonable period after making the 
        request if the use of the compensatory time off does not unduly 
        disrupt the operations of the employer.</DELETED>
        <DELETED>    ``(8) Definitions.--The terms `monetary overtime 
        compensation' and `compensatory time off' shall have the 
        meanings given the terms `overtime compensation' and 
        `compensatory time', respectively, by subsection 
        (o)(7).''.</DELETED>
        <DELETED>    (4) Notice to employees.--Not later than 30 days 
        after the date of the enactment of this Act, the Secretary of 
        Labor shall revise the materials the Secretary provides, under 
        regulations published at 29 C.F.R. 516.4, to employers for 
        purposes of a notice explaining the Fair Labor Standards Act of 
        1938 to employees so that such notice reflects the amendments 
        made to such Act by this subsection.</DELETED>
    (a) Compensatory Time Off.--
            (1) In general.--Section 7 of the Fair Labor Standards Act 
        of 1938 (29 U.S.C. 207) is amended by adding at the end the 
        following:
    ``(r) Compensatory Time Off for Private Employees.--
            ``(1) Voluntary participation.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), no employee may be required under 
                this subsection to receive compensatory time off in 
                lieu of monetary overtime compensation. The acceptance 
                of compensatory time off in lieu of monetary overtime 
                compensation may not be a condition of employment.
                    ``(B) Collective bargaining agreement.--In a case 
                in which a valid collective bargaining agreement exists 
                between an employer and the representative of the 
                employees that is recognized as provided for in section 
                9(a) of the National Labor Relations Act (29 U.S.C. 
                159(a)), an employee may only be required under this 
                subsection to receive compensatory time off in lieu of 
                monetary overtime compensation in accordance with the 
                agreement.
            ``(2) General rule.--
                    ``(A) Compensatory time off.--An employee may 
                receive, in accordance with this subsection and in lieu 
                of monetary overtime compensation, compensatory time 
                off at a rate not less than one and one-half hours for 
                each hour of employment for which monetary overtime 
                compensation is required by this section.
                    ``(B) Definitions.--In this subsection:
                            ``(i) Employee.--The term `employee' does 
                        not include an employee of a public agency.
                            ``(ii) Employer.--The term `employer' does 
                        not include a public agency.
            ``(3) Conditions.--An employer may provide compensatory 
        time off to employees under paragraph (2)(A) only pursuant to 
        the following:
                    ``(A) The compensatory time off may be provided 
                only in accordance with--
                            ``(i) applicable provisions of a collective 
                        bargaining agreement between the employer and 
                        the representative of the employee that is 
                        recognized as provided for in section 9(a) of 
                        the National Labor Relations Act (29 U.S.C. 
                        159(a)); or
                            ``(ii) in the case of an employee who is 
                        not represented by a labor organization that is 
                        recognized as provided for in section 9(a) of 
                        the National Labor Relations Act, an agreement 
                        or understanding arrived at between the 
                        employer and employee before the performance of 
                        the work involved if the agreement or 
                        understanding was entered into knowingly and 
                        voluntarily by such employee and was not a 
                        condition of employment.
                    ``(B) The compensatory time off may only be 
                provided to an employee described in subparagraph 
                (A)(ii) if such employee has affirmed, in a written or 
                otherwise verifiable statement that is made, kept, and 
                preserved in accordance with section 11(c), that the 
                employee has chosen to receive compensatory time off in 
                lieu of monetary overtime compensation.
                    ``(C) An employee shall be eligible to accrue 
                compensatory time off if such employee has not accrued 
                compensatory time off in excess of the limit applicable 
                to the employee prescribed by paragraph (4).
            ``(4) Hour limit.--
                    ``(A) Maximum hours.--An employee may accrue not 
                more than 240 hours of compensatory time off.
                    ``(B) Compensation date.--Not later than January 31 
                of each calendar year, the employer of the employee 
                shall provide monetary compensation for any unused 
                compensatory time off accrued during the preceding 
                calendar year that was not used prior to December 31 of 
                the preceding calendar year at the rate prescribed by 
                paragraph (8). An employer may designate and 
                communicate to the employees of the employer a 12-month 
                period other than the calendar year, in which case the 
                compensation shall be provided not later than 31 days 
after the end of the 12-month period.
                    ``(C) Excess of 80 hours.--The employer may provide 
                monetary compensation for an employee's unused 
                compensatory time off in excess of 80 hours at any time 
                after providing the employee with at least 30 days' 
                written notice. The compensation shall be provided at 
                the rate prescribed by paragraph (8).
            ``(5) Discontinuance of policy or withdrawal.--
                    ``(A) Discontinuance of policy.--An employer that 
                has adopted a policy offering compensatory time off to 
                employees may discontinue the policy for employees 
                described in paragraph (3)(A)(ii) after providing 30 
                days' written notice to the employees who are subject 
                to an agreement or understanding described in paragraph 
                (3)(A)(ii).
                    ``(B) Withdrawal.--An employee may withdraw an 
                agreement or understanding described in paragraph 
                (3)(A)(ii) at any time, by submitting a written notice 
                of withdrawal to the employer of the employee. An 
                employee may also request in writing that monetary 
                compensation be provided, at any time, for all 
                compensatory time off accrued that has not been used. 
                Within 30 days after receiving the written request, the 
                employer shall provide the employee the monetary 
                compensation due in accordance with paragraph (8).
            ``(6) Additional requirements.--
                    ``(A) Prohibition of coercion.--
                            ``(i) In general.--An employer that 
                        provides compensatory time off under paragraph 
                        (2) to an employee shall not directly or 
                        indirectly intimidate, threaten, or coerce, or 
                        attempt to intimidate, threaten, or coerce, any 
                        employee for the purpose of--
                                    ``(I) interfering with the rights 
                                of the employee under this subsection 
                                to request or not request compensatory 
                                time off in lieu of payment of monetary 
                                overtime compensation for overtime 
                                hours;
                                    ``(II) interfering with the rights 
                                of the employee to use accrued 
                                compensatory time off in accordance 
                                with paragraph (9); or
                                    ``(III) requiring the employee to 
                                use the compensatory time off.
                            ``(ii) Definition.--In clause (i), the term 
                        `intimidate, threaten, or coerce' has the 
                        meaning given the term in section 13A(d)(2).
                    ``(B) Election of overtime compensation or 
                compensatory time.--An agreement or understanding that 
                is entered into by an employee and employer under 
                paragraph (3)(A)(ii) shall permit the employee to 
                elect, for an applicable workweek--
                            ``(i) the payment of monetary overtime 
                        compensation for the workweek; or
                            ``(ii) the accrual of compensatory time off 
                        in lieu of the payment of monetary overtime 
                        compensation for the workweek.''.
            (2) Remedies and sanctions.--Section 16 of the Fair Labor 
        Standards Act of 1938 (29 U.S.C. 216) is amended by adding at 
        the end the following:
    ``(f)(1) In addition to any amount that an employer is liable under 
subsection (b) for a violation of a provision of section 7, an employer 
that violates section 7(r)(6)(A) shall be liable to the employee 
affected in an amount equal to--
            ``(A) the product of--
                    ``(i) the rate of compensation (determined in 
                accordance with section 7(r)(8)(A)); and
                    ``(ii)(I) the number of hours of compensatory time 
                off involved in the violation that was initially 
                accrued by the employee; minus
                    ``(II) the number of such hours used by the 
                employee; and
            ``(B) as liquidated damages, the product of--
                    ``(i) such rate of compensation; and
                    ``(ii) the number of hours of compensatory time off 
                involved in the violation that was initially accrued by 
                the employee.
    ``(2) The employer shall be subject to such liability in addition 
to any other remedy available for such violation under this section or 
section 17, including a criminal penalty under subsection (a) and a 
civil penalty under subsection (e).''.
            (3) Calculations and special rules.--Section 7(r) of the 
        Fair Labor Standards Act of 1938 (29 U.S.C. 207(r)), as added 
        by paragraph (1), is amended by adding at the end the 
        following:
            ``(7) Termination of employment.--An employee who has 
        accrued compensatory time off authorized to be provided under 
        paragraph (2) shall, upon the voluntary or involuntary 
        termination of employment, be paid for the unused compensatory 
        time off in accordance with paragraph (8).
            ``(8) Rate of compensation for compensatory time off.--
                    ``(A) General rule.--If compensation is to be paid 
                to an employee for accrued compensatory time off, the 
                compensation shall be paid at a rate of compensation 
                not less than--
                            ``(i) the regular rate received by such 
                        employee when the compensatory time off was 
                        earned; or
                            ``(ii) the final regular rate received by 
                        such employee,
                whichever is higher.
                    ``(B) Consideration of payment.--Any payment owed 
                to an employee under this subsection for unused 
                compensatory time off shall be considered unpaid 
                monetary overtime compensation.
            ``(9) Use of time.--An employee--
                    ``(A) who has accrued compensatory time off 
                authorized to be provided under paragraph (2); and
                    ``(B) who has requested the use of the accrued 
                compensatory time off,
        shall be permitted by the employer of the employee to use the 
        accrued compensatory time off within a reasonable period after 
        making the request if the use of the accrued compensatory time 
        off does not unduly disrupt the operations of the employer.
            ``(10) Definitions.--The terms `monetary overtime 
        compensation' and `compensatory time off' shall have the 
        meanings given the terms `overtime compensation' and 
        `compensatory time', respectively, by subsection (o)(7).''.
            (4) Notice to employees.--Not later than 30 days after the 
        date of enactment of this Act, the Secretary of Labor shall 
        revise the materials the Secretary provides, under regulations 
        contained in section 516.4 of title 29, Code of Federal 
        Regulations, to employers for purposes of a notice explaining 
        the Fair Labor Standards Act of 1938 to employees so that the 
        notice reflects the amendments made to the Act by this 
        subsection.
<DELETED>    (b) Biweekly Work Programs and Flexible Credit Hour 
Programs.--</DELETED>
        <DELETED>    (1) In general.--The Fair Labor Standards Act of 
        1938 is amended by inserting after section 13 (29 U.S.C. 213) 
        the following new section:</DELETED>

<DELETED>``SEC. 13A. BIWEEKLY WORK PROGRAMS AND FLEXIBLE CREDIT HOUR 
              PROGRAMS.</DELETED>

<DELETED>    ``(a) Purposes.--The purposes of this section are--
</DELETED>
        <DELETED>    ``(1) to assist working people in the United 
        States;</DELETED>
        <DELETED>    ``(2) to balance the demands of workplaces with 
        the needs of families;</DELETED>
        <DELETED>    ``(3) to provide such assistance and balance such 
        demands by allowing employers to establish biweekly work 
        programs and flexible credit hour programs, in which employees 
        may voluntarily participate; and</DELETED>
        <DELETED>    ``(4) to give private sector employees the same 
        benefits of biweekly work schedules and flexible credit hours 
        as have been enjoyed by Federal Government employees since 
        1978.</DELETED>
<DELETED>    ``(b) Biweekly Work Programs.--</DELETED>
        <DELETED>    ``(1) In general.--Notwithstanding any other 
        provision of law, an employer may establish biweekly work 
        programs that allow the use of a biweekly work schedule--
        </DELETED>
                <DELETED>    ``(A) that consists of a basic work 
                requirement of not more than 80 hours, over a 2-week 
                period; and</DELETED>
                <DELETED>    ``(B) in which more than 40 hours of the 
                work requirement may occur in a week of the 
                period.</DELETED>
        <DELETED>    ``(2) Computation of overtime.--In the case of an 
        employee participating in such a biweekly work program, all 
        hours worked in excess of such a biweekly work schedule or in 
        excess of 80 hours in the 2-week period, that are requested in 
        advance by an employer, shall be overtime hours.</DELETED>
        <DELETED>    ``(3) Overtime compensation provision.--The 
        employee shall be compensated for each such overtime hour at a 
        rate not less than one and one-half times the regular rate at 
        which the employee is employed, in accordance with section 
        7(a)(1), or receive compensatory time off in accordance with 
        section 7(r) for each such overtime hour.</DELETED>
        <DELETED>    ``(4) Compensation for hours in schedule.--
        Notwithstanding section 7 or any other provision of law that 
        relates to premium pay for overtime work, the employee shall be 
        compensated for each hour in such a biweekly work schedule at a 
        rate not less than the regular rate at which the employee is 
        employed.</DELETED>
<DELETED>    ``(c) Flexible Credit Hour Programs.--</DELETED>
        <DELETED>    ``(1) In general.--Notwithstanding any other 
        provision of law, an employer may establish flexible credit 
        hour programs, under which, at the election of an employee, the 
        employer and the employee jointly designate hours for the 
        employee to work that are in excess of the basic work 
        requirement of the employee so that the employee can accumulate 
        flexible credit hours to reduce the hours worked in a week or a 
        day subsequent to the day on which the flexible credit hours 
        are worked.</DELETED>
        <DELETED>    ``(2) Computation of overtime.--In the case of an 
        employee participating in such a flexible credit hour program, 
        all hours worked in excess of 40 hours in a week that are 
        requested in advance by an employer, other than flexible credit 
        hours, shall be overtime hours.</DELETED>
        <DELETED>    ``(3) Overtime compensation provision.--The 
        employee shall be compensated for each such overtime hour at a 
        rate not less than one and one-half times the regular rate at 
        which the employee is employed, in accordance with section 
        7(a)(1), or receive compensatory time off in accordance with 
        section 7(r) for each such overtime hour.</DELETED>
        <DELETED>    ``(4) Compensation for flexible credit hours.--
        Notwithstanding section 7 or any other provision of law that 
        relates to premium pay for overtime work, an employee shall be 
        compensated for each flexible credit hour at a rate not less 
        than the regular rate at which the employee is 
        employed.</DELETED>
        <DELETED>    ``(5) Accumulation and compensation.--</DELETED>
                <DELETED>    ``(A) Accumulation of flexible credit 
                hours.--An employee who is participating in such a 
                flexible credit hour program can accumulate not more 
                than 50 flexible credit hours.</DELETED>
                <DELETED>    ``(B) Compensation for flexible credit 
                hours of employees no longer subject to program.--Any 
                employee who was participating in such a flexible 
                credit hour program and who is no longer subject to 
                such a program shall be paid at a rate not less than 
                the regular rate at which the employee is employed on 
                the date the employee receives such payment, for not 
                more than 50 flexible credit hours accumulated by such 
                employee.</DELETED>
                <DELETED>    ``(C) Compensation for annually 
                accumulated flexible credit hours.--</DELETED>
                        <DELETED>    ``(i) In general.--Not later than 
                        January 31 of each calendar year, the employer 
                        of an employee who is participating in such a 
                        flexible credit hour program shall provide 
                        monetary compensation for any flexible credit 
                        hours accumulated as described in subparagraph 
                        (A) during the preceding calendar year that 
                        were not used prior to December 31 of the 
                        preceding calendar year at a rate not less than 
                        the regular rate at which the employee is 
                        employed on the date the employee receives such 
                        payment.</DELETED>
                        <DELETED>    ``(ii) Different 12-month 
                        period.--An employer may designate and 
                        communicate to the employees of the employer a 
                        12-month period other than the calendar year, 
                        in which case such compensation shall be 
                        provided not later than 31 days after the end 
                        of such 12-month period.</DELETED>
<DELETED>    ``(d) Participation.--</DELETED>
        <DELETED>    ``(1) In general.--Except as provided in paragraph 
        (2), no employee may be required to participate in a program 
        described in this section. Participation in a program described 
        in this section may not be a condition of employment.</DELETED>
        <DELETED>    ``(2) Collective bargaining agreement.--In a case 
        in which a valid collective bargaining agreement exists, an 
        employee may only be required to participate in such a program 
        in accordance with the agreement.</DELETED>
        <DELETED>    ``(3) Prohibition of coercion.--</DELETED>
                <DELETED>    ``(A) In general.--An employer may not 
                directly or indirectly intimidate, threaten, or coerce, 
                or attempt to intimidate, threaten, or coerce, any 
                employee for the purpose of interfering with the rights 
                of such employee under this section to elect or not to 
                elect to work a biweekly work schedule, to elect or not 
                to elect to participate in a flexible credit hour 
                program, or to elect or not to elect to work flexible 
                credit hours (including working flexible credit hours 
                in lieu of overtime hours).</DELETED>
                <DELETED>    ``(B) Definition.--As used in subparagraph 
                (A), the term `intimidate, threaten, or coerce' 
                includes promising to confer or conferring any benefit 
                (such as appointment, promotion, or compensation) or 
                effecting or threatening to effect any reprisal (such 
                as deprivation of appointment, promotion, or 
                compensation).</DELETED>
<DELETED>    ``(e) Application of Programs in the Case of Collective 
Bargaining Agreements.--</DELETED>
        <DELETED>    ``(1) Applicable requirements.--In the case of 
        employees in a unit represented by an exclusive representative, 
        any biweekly work program or flexible credit hour program 
        described in subsection (b) or (c), respectively, and the 
        establishment and termination of any such program, shall be 
        subject to the provisions of this section and the terms of a 
        collective bargaining agreement between the employer and the 
        exclusive representative.</DELETED>
        <DELETED>    ``(2) Inclusion of employees.--Employees within a 
        unit represented by an exclusive representative shall not be 
        included within any program under this section except to the 
        extent expressly provided under a collective bargaining 
        agreement between the employer and the exclusive 
        representative.</DELETED>
        <DELETED>    ``(3) Collective bargaining agreements.--Nothing 
        in this section shall be construed to diminish the obligation 
        of an employer to comply with any collective bargaining 
        agreement or any employment benefits program or plan that 
provides lesser or greater rights to employees than the benefits 
established under this section.</DELETED>
<DELETED>    ``(f) Definitions.--As used in this section:</DELETED>
        <DELETED>    ``(1) Basic work requirement.--The term `basic 
        work requirement' means the number of hours, excluding overtime 
        hours, that an employee is required to work or is required to 
        account for by leave or otherwise.</DELETED>
        <DELETED>    ``(2) Collective bargaining.--The term `collective 
        bargaining' means the performance of the mutual obligation of 
        the representative of an employer and the exclusive 
        representative of employees in an appropriate unit to meet at 
        reasonable times and to consult and bargain in a good-faith 
        effort to reach agreement with respect to the conditions of 
        employment affecting such employees and to execute, if 
        requested by either party, a written document incorporating any 
        collective bargaining agreement reached, but the obligation 
        referred to in this paragraph does not compel either party to 
        agree to a proposal or to make a concession.</DELETED>
        <DELETED>    ``(3) Collective bargaining agreement.--The term 
        `collective bargaining agreement' means an agreement entered 
        into as a result of collective bargaining.</DELETED>
        <DELETED>    ``(4) Election.--The term `at the election of', 
        used with respect to an employee, means at the initiative of, 
        and at the request of, the employee.</DELETED>
        <DELETED>    ``(5) Employee.--The term `employee' means an 
        employee, as defined in section 3, except that the term shall 
        not include an employee, as defined in section 6121(2) of title 
        5, United States Code.</DELETED>
        <DELETED>    ``(6) Employer.--The term `employer' means an 
        employer, as defined in section 3, except that the term shall 
        not include any person acting in relation to an employee, as 
        defined in section 6121(2) of title 5, United States 
        Code.</DELETED>
        <DELETED>    ``(7) Exclusive representative.--The term 
        `exclusive representative' means any labor organization that--
        </DELETED>
                <DELETED>    ``(A) is certified as the exclusive 
                representative of employees in an appropriate unit 
                pursuant to Federal law; or</DELETED>
                <DELETED>    ``(B) was recognized by an employer 
                immediately before the date of enactment of this 
                section as the exclusive representative of employees in 
                an appropriate unit--</DELETED>
                        <DELETED>    ``(i) on the basis of an election; 
                        or</DELETED>
                        <DELETED>    ``(ii) on any basis other than an 
                        election;</DELETED>
                <DELETED>and continues to be so recognized.</DELETED>
        <DELETED>    ``(8) Flexible credit hours.--The term `flexible 
        credit hours' means any hours, within a flexible credit hour 
        program established under subsection (c), that are in excess of 
        the basic work requirement of an employee and that, at the 
        election of the employee, the employer and the employee jointly 
        designate for the employee to work so as to reduce the hours 
        worked in a week or a day subsequent to the day on which the 
        flexible credit hours are worked.</DELETED>
        <DELETED>    ``(9) Overtime hours.--The term `overtime hours'--
        </DELETED>
                <DELETED>    ``(A) when used with respect to biweekly 
                work programs under subsection (b), means all hours 
                worked in excess of the biweekly work schedule involved 
                or in excess of 80 hours in the 2-week period involved, 
                that are requested in advance by an employer.</DELETED>
                <DELETED>    ``(B) when used with respect to flexible 
                credit hour programs under subsection (c), means all 
                hours worked in excess of 40 hours in a week that are 
                requested in advance by an employer, but does not 
                include flexible credit hours.</DELETED>
        <DELETED>    ``(10) Regular rate.--The term `regular rate' has 
        the meaning given the term in section 7(e).''.</DELETED>
        <DELETED>    (2) Prohibitions.--</DELETED>
                <DELETED>    (A) Purposes.--The purposes of this 
                paragraph are to make violations of the biweekly work 
                program and flexible credit hour program provisions by 
                employers unlawful under the Fair Labor Standards Act 
                of 1938, and to provide for appropriate remedies for 
                such violations, including, as appropriate, fines, 
                imprisonment, injunctive relief, and appropriate legal 
                or equitable relief, including liquidated 
                damages.</DELETED>
                <DELETED>    (B) Remedies and sanctions.--Section 
                15(a)(3) of the Fair Labor Standards Act of 1938 (29 
                U.S.C. 215(a)(3)) is amended by inserting before the 
                semicolon the following: ``, or to violate any of the 
                provisions of section 13A''.</DELETED>
    (b) Biweekly Work Programs and Flexible Credit Hour Programs.--
            (1) In general.--The Fair Labor Standards Act of 1938 is 
        amended by inserting after section 13 (29 U.S.C. 213) the 
        following:

``SEC. 13A. BIWEEKLY WORK PROGRAMS AND FLEXIBLE CREDIT HOUR PROGRAMS.

    ``(a) Voluntary Participation.--
            ``(1) In general.--Except as provided in paragraph (2), no 
        employee may be required to participate in a program described 
        in this section. Participation in a program described in this 
        section may not be a condition of employment.
            ``(2) Collective bargaining agreement.--In a case in which 
        a valid collective bargaining agreement exists, an employee may 
        only be required to participate in such a program in accordance 
        with the agreement.
    ``(b) Biweekly Work Programs.--
            ``(1) In general.--Notwithstanding section 7, an employer 
        may establish biweekly work programs that allow the use of a 
        biweekly work schedule--
                    ``(A) that consists of a basic work requirement of 
                not more than 80 hours, over a 2-week period; and
                    ``(B) in which more than 40 hours of the work 
                requirement may occur in a week of the period.
            ``(2) Conditions.--An employer may carry out a biweekly 
        work program described in paragraph (1) for employees only 
        pursuant to the following:
                    ``(A) Agreement or understanding.--The program may 
                be carried out only in accordance with--
                            ``(i) applicable provisions of a collective 
                        bargaining agreement between the employer and 
                        the representative of the employees that is 
                        recognized as provided for in section 9(a) of 
                        the National Labor Relations Act (29 U.S.C. 
                        159(a)); or
                            ``(ii) in the case of an employee who is 
                        not represented by a labor organization that is 
                        recognized as provided for in section 9(a) of 
                        the National Labor Relations Act, an agreement 
                        or understanding arrived at between the 
                        employer and employee before the performance of 
                        the work involved if the agreement or 
                        understanding was entered into knowingly and 
                        voluntarily by such employee and was not a 
                        condition of employment.
                    ``(B) Statement.--The program shall apply to an 
                employee described in subparagraph (A)(ii) if such 
                employee has affirmed, in a written or otherwise 
                verifiable statement that is made, kept, and preserved 
                in accordance with section 11(c), that the employee has 
                chosen to participate in the program.
            ``(3) Compensation for hours in schedule.--Notwithstanding 
        section 7, in the case of an employee participating in such a 
        biweekly work program, the employee shall be compensated for 
        each hour in such a biweekly work schedule at a rate not less 
        than the regular rate at which the employee is employed.
            ``(4) Computation of overtime.--All hours worked by the 
        employee in excess of such a biweekly work schedule or in 
        excess of 80 hours in the 2-week period, that are requested in 
        advance by the employer, shall be overtime hours.
            ``(5) Overtime compensation provision.--The employee shall 
        be compensated for each such overtime hour at a rate not less 
        than one and one-half times the regular rate at which the 
        employee is employed, in accordance with section 7(a)(1), or 
        receive compensatory time off in accordance with section 7(r) 
        for each such overtime hour.
            ``(6) Discontinuance of program or withdrawal.--
                    ``(A) Discontinuance of program.--An employer that 
                has established a biweekly work program under paragraph 
                (1) may discontinue the program for employees described 
                in paragraph (2)(A)(ii) after providing 30 days' 
                written notice to the employees who are subject to an 
                agreement or understanding described in paragraph 
                (2)(A)(ii).
                    ``(B) Withdrawal.--An employee may withdraw an 
                agreement or understanding described in paragraph 
                (2)(A)(ii) at the end of any 2-week period described in 
                paragraph (1)(A), by submitting a written notice of 
                withdrawal to the employer of the employee.
    ``(c) Flexible Credit Hour Programs.--
            ``(1) In general.--Notwithstanding section 7, an employer 
        may establish flexible credit hour programs, under which, at 
        the election of an employee, the employer and the employee 
        jointly designate hours for the employee to work that are in 
        excess of the basic work requirement of the employee so that 
        the employee can accrue flexible credit hours to reduce the 
        hours worked in a week or a day subsequent to the day on which 
        the flexible credit hours are worked.
            ``(2) Conditions.--An employer may carry out a flexible 
        credit hour program described in paragraph (1) for employees 
        only pursuant to the following:
                    ``(A) Agreement or understanding.--The program may 
                be carried out only in accordance with--
                            ``(i) applicable provisions of a collective 
                        bargaining agreement between the employer and 
                        the representative of the employees that is 
                        recognized as provided for in section 9(a) of 
                        the National Labor Relations Act (29 U.S.C. 
                        159(a)); or
                            ``(ii) in the case of an employee who is 
                        not represented by a labor organization that is 
                        recognized as provided for in section 9(a) of 
                        the National Labor Relations Act, an agreement 
                        or understanding arrived at between the 
                        employer and employee before the performance of 
                        the work involved if the agreement or 
                        understanding was entered into knowingly and 
                        voluntarily by such employee and was not a 
                        condition of employment.
                    ``(B) Statement.--The program shall apply to an 
                employee described in subparagraph (A)(ii) if such 
                employee has affirmed, in a written or otherwise 
                verifiable statement that is made, kept, and preserved 
                in accordance with section 11(c), that the employee has 
                chosen to participate in the program.
                    ``(C) Hours.--An agreement or understanding that is 
                entered into under subparagraph (A) shall provide that, 
                at the election of an employee, the employer and the 
                employee will jointly designate, for an applicable 
                workweek, flexible credit hours for the employee to 
                work.
                    ``(D) Limit.--An employee shall be eligible to 
                accrue flexible credit hours if the employee has not 
                accrued flexible credit hours in excess of the limit 
                applicable to the employee prescribed by paragraph (3).
            ``(3) Hour limit.--
                    ``(A) Maximum hours.--An employee who is 
                participating in such a flexible credit hour program 
                may accrue not more than 50 flexible credit hours.
                    ``(B) Compensation date.--Not later than January 31 
                of each calendar year, the employer of an employee who 
                is participating in such a flexible credit hour program 
                shall provide monetary compensation for any flexible 
                credit hours accrued during the preceding calendar year 
                that were not used prior to December 31 of the 
                preceding calendar year at a rate not less than the 
                regular rate at which the employee is employed on the 
                date the employee receives the compensation. An 
                employer may designate and communicate to the employees 
                of the employer a 12-month period other than the 
                calendar year, in which case the compensation shall be 
                provided not later than 31 days after the end of the 
                12-month period.
            ``(4) Compensation for flexible credit hours.--
        Notwithstanding section 7, in the case of an employee 
        participating in such a flexible credit hour program, the 
        employee shall be compensated for each flexible credit hour at 
        a rate not less than the regular rate at which the employee is 
        employed.
            ``(5) Computation of overtime.--All hours worked by the 
        employee in excess of 40 hours in a week that are requested in 
        advance by the employer, other than flexible credit hours, 
        shall be overtime hours.
            ``(6) Overtime compensation provision.--The employee shall 
        be compensated for each such overtime hour at a rate not less 
        than one and one-half times the regular rate at which the 
        employee is employed, in accordance with section 7(a)(1), or 
        receive compensatory time off in accordance with section 7(r) 
        for each such overtime hour.
            ``(7) Use of time.--An employee--
                    ``(A) who has accrued flexible credit hours; and
                    ``(B) who has requested the use of the accrued 
                flexible credit hours,
        shall be permitted by the employer of the employee to use the 
        accrued flexible credit hours within a reasonable period after 
        making the request if the use of the accrued flexible credit 
        hours does not unduly disrupt the operations of the employer.
            ``(8) Discontinuance of program or withdrawal.--
                    ``(A) Discontinuance of program.--An employer that 
                has established a flexible credit hour program under 
                paragraph (1) may discontinue the program for employees 
                described in paragraph (2)(A)(ii) after providing 30 
                days' written notice to the employees who are subject 
                to an agreement or understanding described in paragraph 
                (2)(A)(ii).
                    ``(B) Withdrawal.--An employee may withdraw an 
                agreement or understanding described in paragraph 
                (2)(A)(ii) at any time, by submitting a written notice 
of withdrawal to the employer of the employee. An employee may also 
request in writing that monetary compensation be provided, at any time, 
for all flexible credit hours accrued that have not been used. Within 
30 days after receiving the written request, the employer shall provide 
the employee the monetary compensation due at a rate not less than the 
regular rate at which the employee is employed on the date the employee 
receives the compensation.
    ``(d) Prohibition of Coercion.--
            ``(1) In general.--An employer shall not directly or 
        indirectly intimidate, threaten, or coerce, or attempt to 
        intimidate, threaten, or coerce, any employee for the purpose 
        of--
                    ``(A) interfering with the rights of the employee 
                under this section to elect or not to elect to work a 
                biweekly work schedule;
                    ``(B) interfering with the rights of the employee 
                under this section to elect or not to elect to 
                participate in a flexible credit hour program, or to 
                elect or not to elect to work flexible credit hours 
                (including working flexible credit hours in lieu of 
                overtime hours);
                    ``(C) interfering with the rights of the employee 
                under this section to use accrued flexible credit hours 
                in accordance with subsection (c)(7); or
                    ``(D) requiring the employee to use the flexible 
                credit hours.
            ``(2) Definition.--In paragraph (1), the term `intimidate, 
        threaten, or coerce' includes promising to confer or conferring 
        any benefit (such as appointment, promotion, or compensation) 
        or effecting or threatening to effect any reprisal (such as 
        deprivation of appointment, promotion, or compensation).
    ``(e) Definitions.--In this section:
            ``(1) Basic work requirement.--The term `basic work 
        requirement' means the number of hours, excluding overtime 
        hours, that an employee is required to work or is required to 
        account for by leave or otherwise.
            ``(2) Collective bargaining.--The term `collective 
        bargaining' means the performance of the mutual obligation of 
        the representative of an employer and the representative of 
        employees of the employer that is recognized as provided for in 
        section 9(a) of the National Labor Relations Act (29 U.S.C. 
        159(a)) to meet at reasonable times and to consult and bargain 
        in a good-faith effort to reach agreement with respect to the 
        conditions of employment affecting such employees and to 
        execute, if requested by either party, a written document 
        incorporating any collective bargaining agreement reached, but 
        the obligation referred to in this paragraph shall not compel 
        either party to agree to a proposal or to make a concession.
            ``(3) Collective bargaining agreement.--The term 
        `collective bargaining agreement' means an agreement entered 
        into as a result of collective bargaining.
            ``(4) Election.--The term `at the election of', used with 
        respect to an employee, means at the initiative of, and at the 
        request of, the employee.
            ``(5) Employee.--The term `employee' does not include an 
        employee of a public agency.
            ``(6) Employer.--The term `employer' does not include a 
        public agency.
            ``(7) Flexible credit hours.--The term `flexible credit 
        hours' means any hours, within a flexible credit hour program 
        established under subsection (c), that are in excess of the 
        basic work requirement of an employee and that, at the election 
        of the employee, the employer and the employee jointly 
        designate for the employee to work so as to reduce the hours 
        worked in a week or a day subsequent to the day on which the 
        flexible credit hours are worked.
            ``(8) Overtime hours.--The term `overtime hours'--
                    ``(A) when used with respect to biweekly work 
                programs under subsection (b), means all hours worked 
                in excess of the biweekly work schedule involved or in 
                excess of 80 hours in the 2-week period involved, that 
                are requested in advance by an employer; or
                    ``(B) when used with respect to flexible credit 
                hour programs under subsection (c), means all hours 
                worked in excess of 40 hours in a week that are 
                requested in advance by an employer, but does not 
                include flexible credit hours.
            ``(9) Regular rate.--The term `regular rate' has the 
        meaning given the term in section 7(e).''.
            (2) Prohibitions.--Section 15(a)(3) of the Fair Labor 
        Standards Act of 1938 (29 U.S.C. 215(a)(3)) is amended--
                    (A) by inserting ``(A)'' after ``(3)'';
                    (B) by adding ``or'' after the semicolon; and
                    (C) by adding at the end the following:
            ``(B) to violate any of the provisions of section 13A;''.
<DELETED>    (c) Limitations On Salary Practices Relating To Exempt 
Employees.--Section 13 of the Fair Labor Standards Act of 1938 (29 
U.S.C. 213) is amended by adding at the end the following:</DELETED>
<DELETED>    ``(m)(1)(A) In the case of a determination of whether an 
employee is an exempt employee described in subsection (a)(1), the fact 
that the employee is subject to deductions in compensation for--
</DELETED>
        <DELETED>    ``(i) absences of the employee from employment of 
        less than a full workday; or</DELETED>
        <DELETED>    ``(ii) absences of the employee from employment of 
        less than a full pay period,</DELETED>
<DELETED>shall not be considered in making such 
determination.</DELETED>
<DELETED>    ``(B) In the case of a determination described in 
subparagraph (A), an actual reduction in compensation of the employee 
may be considered in making the determination.</DELETED>
<DELETED>    ``(C) For the purposes of this paragraph, the term `actual 
reduction in compensation' does not include any reduction in accrued 
paid leave, or any other practice, that does not reduce the amount of 
compensation an employee receives for a pay period.</DELETED>
<DELETED>    ``(2) The payment of overtime compensation or other 
additions to the compensation of an employee employed on a salary based 
on hours worked shall not be considered in determining if the employee 
is an exempt employee described in subsection (a)(1).''.</DELETED>
    (c) Limitations On Salary Practices Relating To Exempt Employees.--
            (1) In general.--Section 13 of the Fair Labor Standards Act 
        of 1938 (29 U.S.C. 213) is amended by adding at the end the 
        following:
    ``(m)(1)(A) In the case of a determination of whether an employee 
is an exempt employee described in subsection (a)(1), the fact that the 
employee is subject to deductions in pay for--
            ``(i) absences of the employee from employment of less than 
        a full workday; or
            ``(ii) absences of the employee from employment of less 
        than a full pay period,
shall not be considered in making such determination.
    ``(B) In the case of a determination described in subparagraph (A), 
an actual reduction in pay of the employee may be considered in making 
the determination for that employee.
    ``(C) For the purposes of this paragraph, the term `actual 
reduction in pay' does not include any reduction in accrued paid leave, 
or any other practice, that does not reduce the amount of pay an 
employee receives for a pay period.
    ``(2) The payment of overtime compensation or other additions to 
the compensation of an employee employed on a salary based on hours 
worked shall not be considered in determining if the employee is an 
exempt employee described in subsection (a)(1).''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall take effect on the date of enactment of this Act and 
        shall apply to any civil action--
                    (A) that involves an issue with respect to section 
                13(a)(1) of the Fair Labor Standards Act of 1938 (29 
                U.S.C. 213(a)(1)); and
                    (B) in which a final judgment has not been made 
                prior to such date.