SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Working Families Flexibility Act of 
1996''.

SEC. 2. COMPENSATORY TIME.

    Subsection (o) of section 7 of the Fair Labor Standards Act of 1938 
(29 U.S.C. 207) is amended--
            (1) by striking paragraphs (1) through (5) and inserting 
        the following:
    ``(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 one and one-half hours for each hour of employment 
for which overtime compensation is required by this section.
    ``(2) An employer may provide compensatory time under paragraph (1) 
only--
            ``(A) pursuant to--
                    ``(i) applicable provisions of a collective 
                bargaining agreement, memorandum of understanding, or 
                any other agreement between the employer and 
                representatives of such employees, or
                    ``(ii) in the case of employees who are not 
                represented by a collective bargaining agent or other 
                representative designated by the employee, an agreement 
                or understanding arrived at between the employer and 
                employee before the performance of the work if such 
                agreement or understanding was entered into knowingly 
                and voluntarily by such employee;
            ``(B) in the case of an employee who is not an employee of 
        a public agency, 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 in lieu of overtime 
        compensation; and
            ``(C) if the employee has not accrued compensatory time in 
        excess of the limit applicable to the employee prescribed by 
        paragraph (4) or (5).
In the case of employees described in subparagraph (A)(ii) who are 
employees of a public agency and who were hired before April 15, 1986, 
the regular practice in effect on such date with respect to 
compensatory time off for such employees in lieu of the receipt of 
overtime compensation, shall constitute an agreement or understanding 
described in such subparagraph. Except as provided in the preceding 
sentence, the provision of compensatory time off to employees of a 
public agency for hours worked after April 14, 1986, shall be in 
accordance with this subsection. An employer may provide compensatory 
time under paragraph (1) to an employee who is not an employee of a 
public agency only if such agreement or understanding was not a 
condition of employment.
    ``(3) An employer which is not a public agency and which provides 
compensatory time 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--
            ``(A) interfering with such employee's rights under this 
        subsection to request or not request compensatory time off in 
        lieu of payment of overtime compensation for overtime hours; or
            ``(B) requiring any employee to use such compensatory time.
    ``(4)(A) An employee, who is not an employee of a public agency, 
may accrue not more than 240 hours of compensatory time.
    ``(B)(i) Not later than January 31 of each calendar year, the 
employee's employer shall provide monetary compensation for any 
compensatory time off accrued during the preceding calendar year which 
was not used prior to December 31 of the preceding year at the rate 
prescribed by paragraph (6). An employer may designate and communicate 
to the employer's employees 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.
    ``(ii) The employer may provide monetary compensation for an 
employee's unused compensatory time 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).
    ``(iii) An employer which has adopted a policy offering 
compensatory time to employees may discontinue such policy upon giving 
employees 30 days notice. An employee who is not an employee of a 
public agency may withdraw an agreement or understanding described in 
paragraph (2)(A)(ii) at any time.
    ``(C) An employee may also request in writing that monetary 
compensation be provided, at any time, for all compensatory time 
accrued which has not yet been used. Within 30 days of receiving the 
written request, the employer shall provide the employee the monetary 
compensation due in accordance with paragraph (6).
    ``(5)(A) If the work of an employee of a public agency for which 
compensatory time may be provided included work in a public safety 
activity, an emergency response activity, or a seasonal activity, the 
employee engaged in such work may accrue not more than 480 hours of 
compensatory time for hours worked after April 15, 1986. If such work 
was any other work, the employee engaged in such work may accrue not 
more than 240 hours of compensatory time for hours worked after April 
15, 1986. Any such employee who, after April 15, 1986, has accrued 480 
or 240 hours, as the case may be, of compensatory time off shall, for 
additional overtime hours of work, be paid overtime compensation.
    ``(B) If compensation is paid to an employee described in 
subparagraph (A) for accrued compensatory time off, such compensation 
shall be paid at the regular rate earned by the employee at the time 
the employee receives such payment.
    ``(6)(A) An employee of an employer which is not a public agency 
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 at a rate of 
compensation not less than--
            ``(i) the average regular rate received by such employee 
        during the period during which the compensatory time was 
        accrued, or
            ``(ii) the final regular rate received by such employee,
whichever is higher.
    ``(B) An employee of an employer which is a public agency 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 at a rate of compensation not 
less than--
            ``(i) the average regular rate received by such employee 
        during the last 3 years of the employee's employment, or
            ``(ii) the final regular rate received by such employee,
whichever is higher.
    ``(C) Any payment owed to an employee under this subsection for 
unused compensatory time shall be considered unpaid overtime 
compensation.
    ``(7) An employee--
            ``(A) who has accrued compensatory time off authorized to 
        be provided under paragraph (1), and
            ``(B) who has requested the use of such compensatory time,
shall be permitted by the employee's employer to use such time within a 
reasonable period after making the request if the use of the 
compensatory time does not unduly disrupt the operations of the 
employer.''; and
            (2) by redesignating paragraphs (6) and (7) as paragraphs 
        (8) and (9), respectively.

SEC. 3. REMEDIES.

    Section 16 of the Fair Labor Standards Act of 1938 (29 U.S.C. 216) 
is amended--
            (1) in subsection (b), by striking ``(b) Any employer'' and 
        inserting ``(b) Except as provided in subsection (f), any 
        employer''; and
            (2) by adding at the end the following:
    ``(f) An employer which is not a public agency and which violates 
section 7(o)(3) shall be liable to the employee affected in the amount 
of the rate of compensation (determined in accordance with section 
7(o)(6)(A)) for each hour of compensatory time accrued by the employee 
and in an additional equal amount as liquidated damages reduced by the 
amount of such rate of compensation for each hour of compensatory time 
used by such employee.''.

SEC. 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 Act.

            Passed the House of Representatives July 30, 1996.

            Attest:

                                                ROBIN H. CARLE,

                                                                 Clerk.
Working Families Flexibility Act of 1996 - Amends the Fair Labor Standards Act of 1938 (FLSA) to provide for compensatory time for all employees. Allows an employee to receive, 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 overtime compensation is required under the Act. Allows an employer to provide such compensatory time only:  (1) pursuant to an agreement with employee representatives, or, where there are no designated representatives, with the employee if such agreement was entered into knowingly and voluntarily; (2) if a private employee has affirmed, in a verifiable statement, the choice of receiving compensatory time in lieu of overtime pay; and (3) if the employee has not accrued compensatory time in excess of applicable limits. Sets forth special rules relating to public employees. Prohibits employer coercion of employees for the purpose of:  (1) interfering with their right to choose whether to request compensatory time off in lieu of overtime pay; or (2) requiring them to use compensatory time. Limits to not more than 240 hours the amount of compensatory time an employee may accrue (with specified exceptions for public agency employees).  Requires payment of compensation at the prescribed regular rate for:  (1) compensatory time accrued but not used in a calendar year or other designated 12-month period; and (2) unused compensatory time upon termination of employment. Allows an employer to provide monetary compensation at any time after giving the employee at least 30 days notice, at the prescribed regular rate, for an employee's unused compensatory time in excess of 80 hours.  Allows an employee to request in writing that monetary compensation be provided at the prescribed regular rate, at any time, for all compensatory time accrued and not yet used. Requires employers to permit employees to use compensatory time within a reasonable period after employees request its use, if such use does not unduly disrupt employers' operations. Makes private employers who violate specified provisions of this Act liable to the employee affected in the amount of the rate of compensation for each hour of compensatory time accrued by the employee, and in an additional equal amount as liquidated damages reduced by the amount of such rate of compensation for each hour of compensatory time used by such employee. Directs the Secretary of Labor to revise materials provided to employers for notices explaining FLSA to employees to reflect amendments made by this Act.
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