No employee may receive or agree to receive compensatory time
off under this subsection unless the employee has worked at
least 1,000 hours for the employee's employer during a period
of continuous employment with the employer in the 12-month
period before the date of agreement or receipt of compensatory
time off.
``(3) Hour limit.--
``(A) Maximum hours.--An employee may accrue not more
than 160 hours of compensatory time.
``(B) Compensation date.--Not later than January 31
of each calendar year, the employee's employer shall
provide monetary compensation for any unused
compensatory time off accrued during the preceding
calendar year that 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.
``(C) Excess of 80 hours.--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).
``(D) Policy.--Except where a collective bargaining
agreement provides otherwise, an employer that has
adopted a policy offering compensatory time to
employees may discontinue such policy upon giving
employees 30 days notice.
``(E) Written request.--An employee may withdraw an
agreement described in paragraph (2)(B) at any time. An
employee may also request in writing that monetary
compensation be provided, at any time, for all
compensatory time accrued that 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).
``(4) Private employer actions.--An employer that provides
compensatory time under paragraph (1) to an employee 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 monetary overtime
compensation for overtime hours; or
``(B) requiring any employee to use such compensatory
time.
``(5) Termination of employment.--An employee 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 in
accordance with paragraph (6).
``(6) Rate of compensation.--
``(A) General rule.--If compensation is to be paid to
an employee for accrued compensatory time off, such
compensation shall be paid at a rate of compensation
not less than--
``(i) the regular rate earned by such
employee when the compensatory time was
accrued; or
``(ii) the regular rate earned by such
employee at the time such employee received
payment of such compensation,
whichever is higher.
``(B) Consideration of payment.--Any payment owed to
an employee under this subsection for unused
compensatory time shall be considered unpaid overtime
compensation.
``(7) Use of time.--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.
``(8) Definitions.--For purposes of this subsection--
``(A) the term `employee' does not include an
employee of a public agency; and
``(B) the terms `overtime compensation' and
`compensatory time' shall have the meanings given such
terms by subsection (o)(7).''