The U.S. House of Representatives on Tuesday overwhelmingly passed an amendment to the Fair Labor Standards Act that will allow employers not to include stock option profits in overtime pay calculations for hourly workers.
The 421-0 vote follows a 95-0 Senate vote on a companion bill last month. President Clinton is expected to sign the legislation into law. The amendment to the 1938 law was quickly pushed through Congress after a February 1999 U.S. Department of Labor advisory came to light in January. The advisory suggested that employers base the time-and-a-half overtime pay for hourly workers not only on their regular hourly rate, but also on any profits made from exercising stock options. Although such advisories don’t have the force of law, courts tend to look to them in the absence of clear statutory guidance.
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