[House Report 105-31]
[From the U.S. Government Publishing Office]



105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                     105-31
_______________________________________________________________________


                  PROVIDING FOR THE CONSIDERATION OF
 
         H.R. 1, THE WORKING FAMILIES FLEXIBILITY ACT OF 1997

                                _______
                                

   March 18, 1997.--Referred to the House Calendar and ordered to be 
                                printed

_______________________________________________________________________


Mr. Pryce of Ohio, from the Committee on Rules, submitted the following

                              R E P O R T

                       [To accompany H. Res. 99]

    The Committee on Rules, having had under consideration 
House Resolution 99, by a nonrecord vote, report the same to 
the House with the recommendation that the resolution be 
adopted.

               brief summary of provisions of resolution

    The resolution provides for the consideration of H.R. 1, 
the ``Working Families Flexibility Act of 1997'' under a 
modified closed rule. The rule provides one hour of general 
debate divided equally between the chairman and ranking 
minority member of the Committee on Education and the 
Workforce.
    The rule makes in order the Committee on Education and the 
Workforce amendment on the nature of a substitute now printed 
in the bill as an original bill for the purpose of amendment 
and provides that it shall be considered as read.
    The rule further makes in order only those amendments 
printed in this report, and provides that the amendments made 
in order shall be considered only in the order specified, shall 
be considered as read, shall be debatable for the time 
specified in the report equally divided and controlled by the 
proponent and an opponent, shall not be subject to amendment, 
and shall not be subject to a demand for a division of the 
question in the House or in the Committee of the Whole.
    The rule also provides that an amendment designated to be 
offered by the chairman of the Committee on Education and the 
Workforce or his designee may be offered en bloc with one or 
more other such amendments.
    Finally, the rule provides for one motion to recommit, with 
or without instructions.

                            committee votes

    Pursuant to clause 2(l)(2)(B) of House rule XI the results 
of each rollcall vote on an amendment or motion to report, 
together with the names of those voting for and against, are 
printed below:

Rules Committee Rollcall No. 3

    Date: March 18, 1997.
    Measure: H.R. 1, the Working Families Flexibility Act of 
1997.
    Motion by: Mr. Frost.
    Summary of motion: Make in order the changes to the Miller 
amendment that Mr. Miller presented in the Rules Committee 
hearing.
    Results: Defeated 4-7.
    Vote by Members: Dreier--Nay; Goss--Nay; Pryce--Nay; Diaz-
Balart--Nay; McInnis--Nay; Hastings--Nay; Moakley--Yea; Frost--
Yea; Hall--Yea; Slaughter--Yea; Solomon--Nay.

 summary of amendments made in order for h.r. 1, the working families 
                        flexibility act of 1997

    (1) Goodling--10 min.: Requires that an employee have 
worked at least 1000 hours during a period of continuous 
employment with the employer within the last year before the 
employee may agree to compensatory time or receive compensatory 
time.
    (2) Goodling--10 min.: Reduces maximum hours of 
compensatory time that may be accrued by an employee from 240 
to 160 hours.
    (3) Goodling--10 min.: Sunsets the private sector 
compensatory time provision after 5 years.
    (4) Owens--10 min.: Exempts workers who earn less than 2.5 
times the minimum wages.
    (5) Miller (CA)--60 min.: Substitute amendment includes 
many of the amendments that were offered in committee mark up 
(and additional amendments). Prohibits employers from directly 
or indirectly soliciting employees to take comp. time; requires 
the Secretary of Labor to define what constitutes a knowing 
decision to accept comp. time; prohibits employers from 
offering comp. time, unless the employer provides all employees 
24 hours of leave that may be used to further partake in 
children's educational activities or to provide routine medical 
care to children or elders; prohibits comp. time to employees 
who work less than 35 hours per week, work less than 12 months 
for the employer, are seasonal, or are employed in the 
construction industry, agricultural industry, garment industry, 
or any industry designated by the Secretary of Labor; provides 
that an employer may not deny comp. time where the leave is 
otherwise protected by the Family and Medical Leave Act; limits 
the amount of comp. time an employee can accrue to 80 hours 
annually; specifically provides that an employer may not 
condition employment benefits or availability of overtime upon 
an employee's decision to accept or reject comp. time or to use 
comp. time; and creates a commission to study comp. time.

                  amendments made in order by the rule

     1. The Amendment To Be Offered by Representative Goodling of 
  Pennsylvania, or a Designee, Debatable for Not To Exceed 10 Minutes

    Page 4, insert after line 10 the following:
    No employee may receive or agree to receive compensatory 
time off under this subsection unless the employee has worked 
at least 1,000 hours for the employee's employer during a 
period of continuous employment with the employer in the 12 
month period before the date of agreement or receipt of 
compensatory time off.
                              ----------                              


      2. An Amendment To Be Offered by Representative Goodling of 
         Pennsylvania, or a Designee, Debatable for 10 Minutes

    Page 4, line 13, strike ``240'' and insert ``160''.
                              ----------                              


      3. An Amendment To Be Offered by Representative Goodling of 
         Pennsylvania, or a Designee, Debatable for 10 Minutes

    Page 9, add after line 2 the following:

SEC. 5. SUNSET.

    This Act and the amendments made by this Act shall expire 5 
years after the date of enactment of this Act.
                              ----------                              


4. An Amendment To Be Offered by Representative Owens of New York, or a 
                   Designee, Debatable for 10 Minutes

    Page 3, line 10, insert before the period the following: 
``or an employee whose rate of pay is less than 2.5 times the 
minimum wage rate in effect under section 6(a)(1)''.
                              ----------                              


 5. An Amendment To Be Offered by Representative Miller of California, 
                or a Designee, Debatable for 60 Minutes

  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Paycheck Protection and Family 
Flexibility Act of 1997''.

SEC. 2. IN GENERAL.

  Section 7 of the Fair Labor Standards Act of 1938 (29 U.S.C. 
207) is amended to add at the end the following:
  ``(r)(1) 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 1\1/2\ hours for 
each hour of employment for which overtime is required by 
subsection (a).
  ``(2) An employer may provide compensatory time to an 
eligible employee under paragraph (1) only--
          ``(A) pursuant to--
                  ``(i) applicable provisions of a collective 
                bargaining agreement between the employer and 
                the labor organization which has been certified 
                or recognized as the representative of the 
                employees under applicable law, or
                  ``(ii) in the case of employees who are not 
                represented by a collective bargaining agent or 
                other representative designated by the 
                employee, a plan adopted by the employer and 
                provided in writing to the employer's employees 
                which provides employees with a voluntary, 
                informed option to receive compensatory time 
                off for overtime work where there is an 
                express, voluntary written request by an 
                individual employee for compensatory time off 
                in lieu of overtime pay provided to the 
                employer prior to the performance of any 
                overtime assignment;
          ``(B) if the employee has not earned compensatory 
        time in excess of the applicable limit prescribed by 
        paragraph (4)(A) or in regulations issued by the 
        Secretary pursuant to paragraph (13);
          ``(C) if the employee is not required as a condition 
        of employment to accept or request compensatory time;
          ``(D) if the agreement or plan complies with the 
        requirements of this subsection and the regulations 
        issued by the Secretary under paragraph (13), including 
        the availability of compensatory time to similarly 
        situated employees on an equal basis; and
          ``(E) if, for purposes of a plan established under 
        subparagraph (A)(ii), the employer, in providing 
        compensatory time, does not modify a leave policy so as 
        to reduce any paid or unpaid leave or does not reduce 
        any other type of benefit or compensation an employee 
        would otherwise be entitled to receive.
  ``(3) An employee may, at any time, withdraw a request for 
compensatory time made under a plan under paragraph (2)(A)(ii).
  ``(4)(A) An employee may earn not more than a total of 80 
hours of compensatory time in any year or alternative 12-month 
period designated pursuant to subparagraph (C). The employer 
shall regularly report to the employee on the number of 
compensatory hours earned by the employee and the total amount 
of the employee's earned-and-unused compensatory time, in 
accordance with regulations issued by the Secretary.
  ``(B) Upon the request of an employee who has earned 
compensatory time, the employer shall on the payday of the pay 
period during which the request is received provide monetary 
compensation for any such compensatory time at a rate not less 
than the regular rate earned by the employee at the time the 
employee performed the overtime work or the employee's regular 
rate at the time such monetary compensation is paid, whichever 
is higher.
  ``(C) Not later than January 31 of each calendar year, each 
employer shall provide monetary compensation to each employee 
for any compensatory time earned during the preceding calendar 
year for which the employee has not already received monetary 
compensation (either through paid time off or cash payment) at 
a rate not less than the regular rate earned by the employee at 
the time the employee performed the overtime work or the 
employee's regular rate at the time such monetary compensation 
is paid, whichever is higher. An agreement or plan under 
paragraph (2) may designate 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. An employee may voluntarily, at the employee's own 
initiative, request in writing that such end-of-year payment of 
monetary compensation for earned compensatory time be delayed 
for a period not to exceed 3 months. This subparagraph shall 
have no effect on the limit on earned compensatory time set 
forth in subparagraph (A) or in regulations issued by the 
Secretary pursuant to paragraph (13).
  ``(5) An employee who has earned compensatory time authorized 
to be provided under paragraph (1) shall, upon the voluntary or 
involuntary termination of employment or upon expiration of 
this subsection, be paid for unused compensatory time at a rate 
of compensation not less than the regular rate earned by the 
employee at the time the employee performed the overtime work 
or the employee's regular rate at the time such monetary 
compensation is paid, whichever is higher.
  ``(6) An employee shall be permitted to use, at the time the 
employee has requested, any compensatory time earned pursuant 
to paragraph (1)--
          ``(A) for any reason which would qualify for leave 
        under section 102(a) of the Family and Medical Leave 
        Act (29 U.S.C. 2612(a)) or any comparable State law; or
          ``(B) for any other purpose--
                  ``(i) upon notice to the employer at least 2 
                weeks prior to the date on which the time off 
                is to be used, unless use of the compensatory 
                time at that time will cause substantial and 
                grievous injury to the employer's operations; 
                or
                  ``(ii) upon notice to the employer within the 
                2 weeks prior to the date on which the time off 
                is to be used unless use of the compensatory 
                time at that time will unduly disrupt the 
                operations of the employer.
  ``(7) An employee shall not be required by the employer to 
use any compensatory time earned pursuant to paragraph (1).
  ``(8) Except where there is a collective bargaining 
agreement, an employer may modify or terminate a compensatory 
time plan upon not less than 60 days notice to employees. When 
a plan is terminated, an employer may not, except as provided 
in paragraph (4)(C), require that an employee who has earned 
compensatory time receive monetary compensation in lieu of such 
time.
  ``(9) An employer may not pay monetary compensation in lieu 
of earned compensatory time except as expressly prescribed in 
this subsection. Any payment owed to an employee under this 
subsection for unused compensatory time shall be considered 
unpaid overtime compensation.
  ``(10) It shall be an unlawful act of discrimination, within 
the meaning of section 15(a)(3), for an employer--
          ``(A) to discharge or in any other manner penalize, 
        discriminate against, or otherwise interfere with any 
        employee--
                  ``(i) because such employee may refuse or has 
                refused to request or accept compensatory time 
                off in lieu of overtime pay, or
                  ``(ii) because such employee may request to 
                use or has used compensatory time off in lieu 
                of overtime pay;
          ``(B) to request, directly or indirectly, that an 
        employee accept compensatory time off in lieu of 
        overtime pay, to require an employee to request or to 
        refuse to request such compensatory time as a condition 
        of employment or as a condition of employment rights or 
        benefits or to qualify the availability of work for 
        which overtime compensation is required upon an 
        employee's request for or acceptance of compensatory 
        time off in lieu of overtime compensation; or
          ``(C) to deny an employee the right to use or force 
        an employee to use earned compensatory time in 
        violation of this subsection.
  ``(11) An employer who violates any provision of this 
subsection shall be liable, in an action brought pursuant to 
section 16(b) or 16(c), in the amount of overtime compensation 
that would have been paid for the overtime hours worked or 
overtime hours that would have been worked, plus such other 
legal or equitable relief as may be appropriate to effectuate 
the purpose of this section, as well as an additional equal 
amount as liquidated damages, costs, and, in the case of an 
action filed under section 16(b), reasonable attorney's fees. 
Where an employee has used compensatory time off or received 
monetary compensation for earned compensatory time for such 
overtime hours worked, the amount of such time used or monetary 
compensation paid to the employee shall be offset against the 
employer's liability under this paragraph.
  ``(12) For the purpose of protecting overtime compensation 
wages of employees, the Secretary may by regulation require 
employers who provide compensatory time to their employees 
under this subsection to secure a payment bond with a surety 
satisfactory for protection of the overtime compensation of 
such employees.
  ``(13)(A) The Secretary may issue regulations as necessary 
and appropriate to implement this subsection including 
regulations implementing recordkeeping requirements and 
prescribing the content of plans and employee notification.
  ``(B) The Secretary may issue regulations regarding classes 
of employees, including all employees in particular occupations 
or industries, to--
          ``(i) exempt such employees from the provisions of 
        this subsection,
          ``(ii) limit the number of compensatory hours that 
        such employees may earn to less than the number 
        provided in paragraph (4)(A), or
          ``(iii) require employers to provide such employees 
        with monetary compensation for earned compensatory time 
        at more frequent intervals than specified in paragraph 
        (4)(C),
where the Secretary has determined that such regulations are 
necessary or appropriate to protect vulnerable employees, that 
a pattern of violations of the Act may exist, or that such 
regulations are necessary or appropriate to assure that 
employees receive the compensation due them.
  ``(C) The Secretary shall issue regulations--
          ``(i) which bar employers with a pattern or practice 
        of violations of this Act from offering compensatory 
        time under this subsection;
          ``(ii) prescribing the content of plans described in 
        paragraph (2)(A)(ii) and employee notification, 
        including the provision of information regarding who is 
        eligible for compensatory time and under what 
        circumstances it may be earned and used and information 
        regarding the impact, if any, that choosing 
        compensatory time may have on the eligibility, accrual, 
        and receipt of other compensation and benefits; and
          ``(iii) requiring employers to keep records in 
        accordance with section 11(c) of compensatory time 
        earned and overtime worked.
  ``(14) When an employee uses earned compensatory time off, 
the employee shall be paid for the time off at the employee's 
regular rate at the time the employee performed the overtime 
work or at the employee's regular rate when the time off is 
taken, whichever is higher.
  ``(15) For purposes of this subsection--
          ``(A) the terms `compensatory time' and `compensatory 
        time off' mean hours during which an employee is not 
        working and for which the employee is compensated at 
        the employee's regular rate in accordance with this 
        subsection;
          ``(B) the term `elderly relative' means an individual 
        of at least 60 years of age who is related by blood or 
        marriage to the employee, including a parent;
          ``(C) the term `employee' does not include--
                  ``(i) a part-time, temporary, or seasonal 
                employee;
                  ``(ii) an employee of a public agency;
                  ``(iii) an employee in the garment industry;
                  ``(iv) an employee who is not entitled to 
                take not less than 24 hours of leave during any 
                12-month period to participate in school 
                activities directly related to the educational 
                advancement of a son or daughter of the 
                employee, accompany such son or daughter to 
                routine medical or dental appointments, and 
                accompany an elderly relative of the employee 
                to routine medical or dental appointments for 
                other professional services related to such 
                elder's care; or
                  ``(v) an employee exempted by the Secretary 
                under paragraph (13)(B);
          ``(D) The term `overtime compensation' shall have the 
        meaning given such term by subsection (o)(7).
          ``(E) The terms `compensatory time' and `compensatory 
        time off' means hours during which an employee is not 
        working and for which the employee is compensated at 
        the employee's regular rate in accordance with this 
        section;
          ``(F) the term `part-time, temporary, or seasonal 
        employee' means--
                  ``(i) an employee whose regular workweek for 
                the employer is less than 35 hours per week;
                  ``(ii) an employee who is employed by the 
                employer for a season or other term of less 
                than 12 months or is otherwise treated by the 
                employer as not a permanent employee of the 
                employer; or
                  ``(iii) an employee in the construction 
                industry, in agricultural employment (as 
                defined by section 3(3) of the Migrant and 
                Seasonal Agricultural Worker Protection Act (29 
                U.S.C. 1802(3)), or in any other industry which 
                the Secretary by regulation has determined is a 
                seasonal industry; and
          ``(G) the term `overtime assignment' means an 
        assignment of hours for which overtime compensation is 
        required under subsection (a).
          ``(H) The term `school' means an elementary or 
        secondary school (as such terms are defined in section 
        14101 of the Elementary and Secondary Education Act of 
        1965 (20 U.S.C. 8801), a Head Start program assisted 
        under the Head Start Act (42 U.S.C. 9831 et seq.), and 
        a child care facility licensed under State law.''.

SEC. 3. CIVIL MONEY PENALTIES.

  The second sentence of section 16(e) of the Fair Labor 
Standards Act of 1938 (29 U.S.C. 216(e)) is amended to read as 
follows: ``Any person who violates section 7(r) of this Act 
shall be subject to a civil penalty not to exceed $1,000 for 
each such violation.''.

SEC. 4. CONSTRUCTION.

  Section 18 of the Fair Labor Standards Act of 1938 (29 U.S.C. 
218) is amended by designating existing section 18 as 
subsection (a) and by adding a new subsection (b) to read as 
follows:
  ``(b)(1) No provision of section 7(r) or of any order 
thereunder shall be construed to--
          ``(A) supersede any provision of any State or local 
        law that provides greater protection to employees who 
        are provided compensatory time off in lieu of paid 
        overtime compensation;
          ``(B) diminish the obligation of an employer to 
        comply with any collective bargaining agreement or any 
        employment benefit program or plan that provides 
        greater protection to employees provided compensatory 
        time off in lieu of paid overtime; or
          ``(C) discourage employers from adopting or retaining 
        compensatory time plans that provide more protection to 
        employees.
  ``(2) Nothing in this subsection shall be construed to allow 
employers to provide compensatory time plans to classes of 
employees who are exempted from subsection 7(r), to allow 
employers to provide more compensatory time than allowed under 
subsection 7(r), or to supersede any limitations placed by 
subsection 7(r), including exemptions and limitations in 
regulations issued by the Secretary thereunder.''.

SEC. 5. COMMISSION ON WORKPLACE FLEXIBILITY.

  (a) Establishment.--There is established a Commission on 
Workplace Flexibility (hereafter in this section referred to as 
the ``Commission''). The members of the Commission shall be 
selected in accordance with the procedures set forth in section 
303 of the Family and Medical Leave Act of 1993 (29 U.S.C. 
2633) and the compensation and powers of the Commission shall 
be as prescribed in sections 304 and 305 of that Act (29 U.S.C. 
2634, 2635).
  (b) Duties.--The Commission shall conduct a comprehensive 
study of the impact of compensatory time on private sector 
employees, including the impact of the law on average earnings, 
hours of work, work schedules, flexibility of scheduling work 
to accommodate family needs, and the ability of vulnerable 
employees or other employees to obtain the compensation to 
which they are entitled, and shall make a comparison of the 
compensatory time offered to public and private employees. A 
report concerning the findings of the study shall be submitted 
to the appropriate committees of Congress and to the Secretary 
of Labor not later than 1 year before the expiration of this 
title. The report shall include recommendations as to whether 
the compensatory time provisions of section 7(r) of the Fair 
Labor Standards Act of 1938 should be modified or extended, 
including a recommendation as to whether particular classes of 
employees or industries should be exempted or otherwise given 
special treatment and whether additional protections should be 
given. The Commission shall have no obligation to conduct a 
study and issue a report pursuant to this section if funds are 
not authorized and appropriated for that purpose.

SEC. 6. EFFECTIVE DATE; SUNSET.

  (a) Effective Date.--This Act and the amendments made by this 
Act shall take effect 6 months after the date of the enactment 
of this Act.
  (b) Sunset.--The provisions of this Act shall expire 4 years 
after date of the enactment of this Act.

                                
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