The House Education and Workforce Committee passed three bills on Thursday aimed at updating aspects of the 1938 Fair Labor Standards Act (FLSA). While the committee approved the measures, none of them have become law yet; they must still pass the full House and Senate and be signed by the president to take effect.
Flexibility for Lower-Income Workers
The first bill, HR 2870, the Working Families Flexibility Act, would allow lower-income hourly workers to choose paid leave instead of overtime pay. Paid leave, or โcomp time,โ would accumulate at 1.5 times the overtime rate, according to The Daily Signal. For example, four hours of overtime in a week would convert into six hours of paid leave.
Advocates say this option could benefit workers who have limited access to family leave. Over a year, an employee consistently working five hours of overtime per week could accumulate roughly ten weeks of paid leave for personal, family, or medical needs.ย
Public-sector workers already have access to similar comp-time arrangements.
Clarifying Tipped Worker Rules
The second bill, HR 2312, the Tipped Employee Protection Act, seeks to simplify rules for tipped employees. Under current law, tipped workersโ combined base pay and tips must meet the minimum wage. However, recent federal guidance has created confusion about what counts as tip-generating work.
The proposed legislation would define tipped work more clearly, aiming to reduce compliance costs for employers and ensure workers retain their rights.ย
Supporters argue the clarification could make it easier for employees to earn tips without complicated tracking of every minute of activity.
Streamlining Payroll Disputes
The final measure, HR 2299, the Ensuring Workers Get PAID Act, would permanently authorize the Department of Laborโs Payroll Independent Audit Determination (PAID) program. The program allows employers to voluntarily audit payroll, identify potential violations, and resolve issues with the department without formal litigation.
Data from the initial PAID pilot, launched in 2018, showed faster resolutions and higher back wage payments per case compared with traditional compliance actions, while reducing administrative costs. The program was later discontinued under the Biden administration.
Committee Chairman Tim Walberg, R-Mich., described the bills as offering โmodern and flexible solutionsโ that could help families, boost tipped wages, and speed up payroll corrections.
