Employers would exclude certain stock awards when calculating overtime pay

Employers would exclude income or value from restricted stock units when setting the pay rate used to calculate overtime. This would cover employer stock awards for workers covered by federal overtime law. Stock programs would need to meet federal requirements for this exclusion. The rule would take effect 90 days after enactment.

Employers would avoid liability under federal overtime law for excluding restricted stock unit income or value. Protection would cover awards received before the effective date. Awards received in the first 12 months would qualify if the program existed at enactment and needs shareholder approval for changes needed to comply. It would also cover programs under union contracts in effect on the effective date. The 12-month window would start on the effective date, 90 days after enactment.