Departments

Comp Time Legislation
By Alan Reuther and Barbara Somson

President Bush and GOP Congressional leaders are expected to make a major push this year to enact the Comp Time legislation. It is likely that they will soon introduce Comp Time bills similar or identical to the so-called "Family Time Flexibility Act" that was introduced in the last Congress.

This Comp Time legislation would replace time-and-a-half premium pay with time off of work. It would allow employers to work employees overtime without paying them money for up to 160 hours a year. Employers would "pay" workers with a promise of time off in the future, when the employer - not the worker - deemed it convenient.

In addition, the Comp Time legislation would eliminate the 40-hour workweek under the Fair Labor Standards Act (FLSA) and replace it with an 80-hour two week work period. Employees would not be entitled to any extra compensation (either premium pay or comp time) until they had worked more than 50 hours in one week or more than 80 hours in a two week period. This means employees could be required to work 48 hours one week, and 32 hours the next week, and still not be entitled to any extra compensation.

The timing of the GOP push for this Comp Time legislation is unclear. The bill could come up as a free standing measure, or it could be offered as a "poison pill" amendment to legislation to increase the minimum wage.

In the last Congress, House GOP leaders attempted to bring the Comp Time bill to the floor, but were forced to pull this measure when they found they didn't have the votes to pass it. The reason they didn't have enough votes is because the UAW and other unions had been out in front on this issue, with our members mounting a fantastic grass roots campaign that let Representatives know of our strong opposition to the Comp Time legislation.

We need to do the same thing again in the 109th Congress. UAW members should contact their Representatives and Senators as soon as possible to urge them to oppose the Comp Time legislation. Tell them that the Comp Time bill will force employees to work longer hours for less pay!

Attached for your information are talking points setting forth why the Comp Time legislation would be terrible for working families.

In addition, attached are lists of the key House and Senate members who could be the swing votes on this issue, as well as certain new members of the House and Senate. It is especially important that UAW members contact these key Representatives and Senators.

Thanks in advance for your efforts on this priority issue.


COMP TIME = LONGER HOURS FOR LESS PAY

The Fair Labor Standards Act (FLSA) requires employers to pay workers time-and-a-half cash for hours worked in excess of 40 per week. But President Bush has promised to enact so-called "comp time" legislation that would amend the FLSA to allow employers to pay workers nothing for overtime work at the time the work is performed-in exchange for a promise of paid time off in the future.

COMP TIME WOULD UNDERMINE THE 40-HOUR WORKWEEK

* The FLSA established the 40-hour workweek so that workers could spend more with their families.
* The 40-hour workweek discourages employers from demanding overtime by making overtime more expensive. Comp time, by contrast, encourages employers to demand more overtime by making overtime less expensive.
* Comp time would make overtime less expensive for employers in two major ways: (1) Employers who compensate workers with time off instead of cash would be able to reduce payroll costs and payroll taxes; (2) employers would save money by having, in effect, an interest-free loan from the "banking" of comp time up to 160 hours in a year per employee.
* By making it cheaper for employers to demand overtime, comp time would lead to more mandatory overtime, longer hours, and more unpredictable work schedules for workers.
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COMP TIME IS A PAY CUT

* Millions of workers depend on cash overtime to make ends meet and to pay their housing, food, and healthcare bills.
* These workers would see a substantial reduction in their take-home pay if they were compensated with time off rather than cash up front.
* Although proponents of comp time say it is voluntary, comp time legislation permits employers to assign overtime preferentially to workers who "volunteer" for comp time instead of cash.


COMP TIME WOULD PROVIDE NO NEW WORK SCHEDULE FLEXIBILITY

* The FLSA already allows employers to give workers time off whenever they please, and to arrange all kinds of flexible work schedules. The vast majority of employers simply choose not to avail themselves of this flexibility.
* The only additional "flexibility" provided by comp time legislation is the flexibility for employers not to pay cash overtime. But the requirement to pay cash overtime happens to be the only real incentive for employers to adhere to a 40-hour workweek!

Protect overtime pay. Protect the 40-hour workweek.