FEDA Joins Business Groups in Supporting Modernization of Fair Labor Standards Act
FEDA has joined other business advocacy groups and trade associations in signing three letters supporting changes to modernize the Fair Labor Standards Act (FLSA).
Now that the government shutdown has ended and the House of Representatives is back in session, the House Education and Workforce Committee is planning to mark up the Ensuring Workers Get PAID Act, the Tipped Employee Protection Act and the Working Families Flexibility Act.
The Ensuring Workers Get PAID Act would reinstate and codify the Department of Labor’s Payroll Audit Independent Determination (PAID) program. This would allow employers to self-audit, report and correct potential violations of certain FLSA regulations, including rectifying mistakes in wages and hours.
The Tipped Employee Protection Act would clarify the definition of “tipped employee” by removing interpretive language such as “customarily” and “regularly” from the FLSA’s current definition. The bill would also prevent regulators from imposing arbitrary limits on the hours or duties a tipped employee may perform.
Finally, the Working Families Flexibility Act would allow employers to offer employees the choice of receiving overtime pay either as added regular compensation in their next paycheck or as paid time off to use at a later date. Allowing employees to convert overtime to banked time off would provide greater flexibility to care for loved ones, attend activities for their children and manage their own health and well-being.
The full texts of the letters are available at the following links: