Federal RuleAug 21
62
DOL Rewrites Disability Rules for 'Merit-Based Opportunity' Push
RuleLabor DepartmentFederal Contract Compliance Programs OfficeSignificant Wallet
119-s-5615119th CongressWALLET
VEST Act
Sponsored By: Senator Moody, Ashley [R-FL]
Introduced
Summary
Exclude restricted stock units from the overtime regular‑rate calculation. The VEST Act would amend the Fair Labor Standards Act to treat RSUs like other employer equity when computing the overtime regular rate and to give employers limited liability protection for certain existing RSU programs.
Show full summary
- Workers who receive RSUs: RSU income or value would not be counted when determining an employee's overtime regular rate, changing how overtime is calculated for employees with RSU grants.
- Employers with RSU programs: Employers could be shielded from Fair Labor Standards Act liability for failing to include RSU value if grants were obtained before the law's effective date, or if they meet specified timing and shareholder‑approval conditions.
- Workers covered by collective bargaining agreements: RSU programs provided under a collective bargaining agreement in effect on the effective date are eligible for the safe harbor protection.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 0 benefits, 1 costs, 0 mixed.
Lower overtime pay for RSU recipients
If enacted, this bill would add restricted stock units (RSUs) to the kinds of employer equity that do not count toward your "regular rate" for FLSA overtime pay. The change would take effect 90 days after enactment and would treat RSU acceptance as well as exercise. The bill would shield employers from FLSA liability for failing to include RSU income or value in the regular rate for grants or rights obtained before that effective date. For grants or rights obtained during the 12-month period after the effective date, that shield would apply only if the RSU program existed on enactment and would require shareholder approval to change. The shield would also apply when the RSU program is provided under a collective bargaining agreement in effect on the effective date.
Sponsors & CoSponsors
Sponsor
Moody, Ashley [R-FL]
FL • R
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov