This bill amends the Fair Labor Standards Act to clarify that restricted stock unit programs are included in the employer-equity exemption used to calculate an employee's regular rate for overtime pay. It adds the phrase "restricted stock unit program" to section 7(e)(8) and changes one word in subparagraph (C) from "exercise" to "exercise or acceptance." The changes take effect 90 days after the bill becomes law.
If your employer gives restricted stock units (RSUs), the value or income from those RSUs can be treated the same as other employer stock awards when calculating the regular rate used to compute overtime. In other words, the bill clarifies that RSUs qualify for the same exemption that already applies to stock options and employee stock purchase programs.
No publicly available information.
The bill says RSUs were not common when the existing exemption was written, so they were not named but were meant to be covered. Supporters say RSUs are now common for many workers and should qualify for the exemption to encourage wider employee equity participation.
No publicly available information.