Recently the U.S. House of Representatives passed the Working Families Flexibility Act which would allow employers to offer compensatory time off ( comp time) in lieu of overtime. Under the bill comp time would be offered at a rate of 1.5 hours per hour of overtime worked and the employee and employer would have to agree in writing to the comp time arrangement. To be eligible an employee would have to work a minimum of 1,000 hours within the preceding 12 months.
Employees could accrue up to 160 hours of comp time a year and would be permitted to use their comp time upon request within a reasonable time, so long as the usage would not unduly disrupt the employer’s operations. Any unused comp time could be cashed out at the end of each year.
This bill faces strong opposition from labor unions, congressional Democrats and the White House. As a result, comp time is unlikely to be an option for private employers in the near future. Private employers must continue to pay overtime for all time worked in excess of 40 hours in a work week in order to comply with the FLSA.
Tennessee Employment Law 