The House Committee on Education and the Workforce have passed two bills that would amend the Fair Labor Standards Act (FLSA) to permit private sector workers to opt for compensatory time rather than monetary overtime and would codify the Payroll Audit Independent Determination program. A U.S. District Court has ruled that a former Amazon employee did not have standing to challenge the decision by the Equal Employment Opportunity Commission (EEOC) for its failure to investigate disparate impact claims. A House Subcommittee held a hearing on learning and employment records (LERs).
House Committee Passes Workforce Bills – The House Committee on Education and the Workforce has approved legislation that would amend the Fair Labor Standards Act (FLSA). According to Representative Tim Walberg (R-MI), these bills would “provide clear, modern, and flexible solutions that expand flexibility for families…, and ensure workers get paid faster when payroll mistakes occur.” The bills need to be considered next by the full House of Representatives.
The “Working Families Flexibility Act of 2025,” (H.R. 2870) would amend the FLSA to allow private sector employees to receive compensatory time in lieu of monetary overtime compensation. Public sector employees have the right to opt for compensatory time rather than monetary overtime. The bill was introduced by Representative Mary Miller (R-IL) and would allow private sector employees to accrue up to 160 hours of compensatory time during a 12 month period. The compensatory time would be accrued at a rate of 1.5 hours for every hour of overtime worked. The compensatory time could be offered either as part of a collective bargaining agreement or where employees are not represented by a labor organization through an agreement between the employer and employee that is arrived at prior to the performance of the work.
The “Ensuring Workers Get Paid Act (H.R. 2299) was introduced by Representative Glenn Grothman (R-WI) and would amend the FLSA to establish a Payroll Audit Independent Determination program to collaborate with employers who inadvertently failed to pay either minimum wage or overtime compensation to employees. Earlier this year, the Labor Department reestablished this program. Employers who seek to voluntarily participate in the program would submit applications to the Department of Labor detailing the results of a self-audit that identified potential FLSA violations. The Wage and Hour Division would review the application and where approved, oversee the settlement and the payment of unpaid minimum wages or overtime compensation to affected employees. Employees would have the option of accepting the settlement or declining it. Where declined, employees would preserve any private right of action they might have under the FLSA.
Court Dismisses Disparate Impact Claim – The U.S. District Court for the District of Columbia ruled that a fired Amazon delivery driver did not have standing to sue the Equal Employment Opportunity Commission (EEOC) for its failure to investigate her sex discrimination disparate impact claim. In the case of Leah Cross v. Equal Employment Opportunity Commission, the District Court stated, ”This Court has recognized on several occasions over many years that an agency’s decision not to prosecute or enforce, whether through civil or criminal process, is a decision generally committed to an agency’s absolute discretion.”
Leah Cross worked as an Amazon delivery driver until the company fired her for failing to meet delivery quotas. She claims that the delivery requirements were so onerous that she could only take bathroom breaks by falling short on the delivery requirements. She says that male drivers could take bathroom breaks without deviating from their routes to find facilities. She contended that Amazon’s policy had a disparate impact on women in violation of Title VII of the Civil Rights Act of 1964. As a result of an executive order issued by President Trump opposing disparate impact discrimination claims, the EEOC directed staff to close disparate impact claims including the one filed by Ms. Cross who received a right-to-sue letter.
While not ruling on the merits of her case, the District Court pointed out that Ms. Cross could bring an action against Amazon challenging the delivery quotas imposed on delivery drivers. It concluded that the EEOC possessed investigatory discretion to determine which cases it would pursue and even if the court ordered the EEOC to reopen the investigation, “the Commission could promptly dismiss them without explanation again.”
House Subcommittee Holds Hearing on Learning and Employment Records (LERs) – The Higher Education and Workforce Development Subcommittee of the House Committee on Education and the Workforce held a hearing to examine “Building a Talent Marketplace: How LERs Empower Workers and Expand Opportunity.” Subcommittee Chairman Burgess Owens (R-UT) stated, “In this present era of innovation, which now includes the power of AI, we need smarter ways to connect jobseekers’ skills with employers’ needs.” He believes that “LERs will bring greater clarity to both sides of the labor market – helping workers identify opportunities and employers find the right talent.”
Alex Kaplan, Advisor, American Association of Collegiate Registrars and Admissions Officers defined a Learning and Employment Record as a “digital system that contains verifiable information about a person's achievements spanning education, training, and workplace experience.” He testified that there is currently a complex system consisting of millions of both workers and employers, over one million credentials, 27,000 apprenticeship programs, and over four million degrees issued annually. He noted that talent management systems have “almost no ability to communicate with each other about the skills and qualifications an individual has or employers’ needs.”
He declared that there is a skills mismatch where there are unfilled jobs and underemployed workers. He stated that with the growth in skills based hiring, employers need a way to verify skills and that LERs can be a key component of the solution. According to Mr. Kaplan, LERs can accelerate the hiring process since the credentials are digitally signed and verifiable. LERs can also assist with internal advancement since they can identify employees who have the skills for promotion. He noted that several states are implementing LERs and recommended that the federal government play a leadership role in this area.
Neil Reichenberg is the former executive director of the International Public Management Association for Human Resources. He is an attorney, a frequent writer and speaker on public policy and human resource issues, and an adjunct faculty member at George Mason University. For questions or additional information, contact Reichenberg at neilreichenberg@yahoo.com.