Congress Passes Legislation Excluding Employee Stock Option Profits From Compensation

Author:Ms Mary Margaret Moore
Profession:Ross & Hardies
 
FREE EXCERPT

On May 3, 2000, the House of Representatives passed a bill, which had already been approved by the Senate, that would amend the Fair Labor Standards Act (FLSA) to permit employers to exclude from an employee's regular rate of pay the profits earned by the employee as a result of participating in the employer's stock option plan. Under current law, employers must take into account the value of such stock option profits when calculating an employee's overtime rate of pay. The legislation, known as the Worker Economic Opportunity Act, is endorsed by the Department of Labor and shares bipartisan support within Congress. President Clinton is expected to sign the bill.

Other efforts are under way within the House and Senate to adopt new legislation that would exclude other payments, such as certain bonus payments, from an employee's regular rate as well. Passage of these bills is less likely.

Other Employment Legislation Pending In Congress

There are currently several bills pending in Congress, in addition to the Worker Economic Opportunity Act, that would amend the FLSA. The first of these would amend the FLSA to provide private sector employees the same opportunities for time-and-a-half compensatory time off and biweekly work programs that Federal employees currently enjoy. The bill would also clarify the provisions of the FLSA relating to exemptions from the overtime requirements for certain professionals. A separate bill that is currently before the House Committee on Education and the Workforce would clarify the exemption from the minimum wage and overtime compensation requirements of the FLSA for certain computer professionals. Yet another bill introduced in the House would amend the FLSA to repeal, for employees of motor carriers, the exemption from the overtime requirements.

Legislation To Watch:

Bill to amend the Civil Rights Act, the Age Discrimination in Employment Act, and the Americans with Disabilities Act to exclude individuals who are employed, but who are unlawfully present in the United States.

Legislation to amend the Americans with Disabilities Act to require, as a precondition to commencing a civil action with respect to a place of public accommodation or commercial facility, that an opportunity be provided to correct the alleged violations.

The United States Department of Labor has published proposed regulations regarding Birth and Adoption Unemployment Compensation. The proposed regulations, if passed by your state legislature, would authorize...

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