Moreau v. Klevenhagen, 508 U.S. 22, 4 (1993)

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Cite as: 508 U. S. 22 (1993)

Opinion of the Court

"(2) A public agency may provide compensatory time [in lieu of overtime pay] only—

"(A) pursuant to— "(i) applicable provisions of a collective bargaining agreement, memorandum of understanding, or any other agreement between the public agency and representatives of such employees; or

"(ii) in the case of employees not covered by sub-clause (i), an agreement or understanding arrived at between the employer and employee before the performance of the work . . . ."

Petitioners are a group of employees who sought, unsuccessfully, to negotiate a collective FLSA compensatory time agreement by way of a designated representative. The narrow question dispositive here is whether petitioners are "employees not covered by subclause (i)" within the meaning of subclause (ii), so that their employer may provide compensatory time pursuant to individual agreements under the second subclause.

I

Congress enacted the FLSA in 1938 to establish nationwide minimum wage and maximum hours standards. Section 7 of the Act encourages compliance with maximum hours standards by providing that employees generally must be paid on a time-and-one-half basis for all hours worked in excess of 40 per week.3

Amendments to the Act in 1966 4 and 1974 5 extended its coverage to most public employers, and gave rise to a series of cases questioning the power of Congress to regulate the

3 29 U. S. C. § 207(a).

4 Fair Labor Standards Amendments of 1966, §§ 102(a) and (b), 80 Stat. 830, 29 U. S. C. §§ 203(d) and (r).

5 Fair Labor Standards Amendments of 1974, §§ 6(a)(1) and (6), 88 Stat. 58, 60, 29 U. S. C. §§ 203(d) and (x).

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