Proposed Labor Law Could Cut Wages by Excluding Changing Time and Training from 'Hours Worked'

The aptly named Flexibility for Workers Education Act is looking to tweak Section 3(o) of the Fair Labor Standards Act (FLSA), which is the federal rulebook defining what counts as “hours worked” for minimum wage and overtime purposes. If passed, this bill makes two major changes that could reduce the calculation base for how much many non-exempt workers get paid.

The Fine Print on Getting Ready for Work

First, the bill tackles the time spent changing clothes or washing up at the beginning or end of a shift. Under current law, this time is often compensable, especially if it’s required by the job (think sanitation workers, food processing, or anyone handling hazardous materials). This bill proposes that this time can be excluded from “hours worked”—meaning employers don’t have to pay for it—if a valid collective-bargaining agreement (CBA) specifically says so, or if there is an established custom or practice of exclusion under that agreement. This is a big deal because it essentially gives employers and unions the power to negotiate away time that many workers currently get paid for. For a factory worker who spends 15 minutes gearing up and 15 minutes cleaning up, this change could mean losing 30 minutes of compensable time per day, or 2.5 hours of pay per week. The bill’s reliance on existing CBAs or “established custom” could also create murky situations where non-unionized workers or those in newly formed bargaining units might lose this pay protection.

Unpaid Training: The Cost of Getting Smarter

The second change focuses on education and training. The bill proposes that time spent attending or participating in an education, training, or similar activity should not count as “hours worked,” provided three conditions are met: it must be outside regular work hours, attendance must be voluntary (with no penalty for skipping), and the employee must not be performing any actual work during the activity. This exclusion applies even if the employer offers or facilitates the program.

On the surface, this sounds like a win for flexibility—employers can offer training without the payroll headache, potentially encouraging more educational opportunities. However, for employees, especially those earning minimum wage or close to it, this means any employer-facilitated training, even if beneficial for career advancement, becomes unpaid time. While the bill states attendance must be voluntary, the real-world pressure to attend employer-sponsored training to avoid falling behind or missing out on promotions can be intense. For a single parent working two jobs, a “voluntary” but unpaid 4-hour training session on a Saturday is less about education and more about a significant economic burden.

Who Pays for the Flexibility?

Ultimately, this legislation aims to reduce labor costs for employers by shrinking the definition of compensable time under the FLSA. While the bill offers employers more flexibility in managing payroll for necessary prep time and optional training, the cost of that flexibility is borne directly by the non-exempt employees. By removing these hours from the “hours worked” calculation, the bill directly reduces the total wages and potential overtime earnings for workers who are already juggling the costs of modern life. It’s a classic case of policy shifting the burden: the employer saves money, but the employee loses critical earnings for time spent either preparing for work or preparing for their career.