What does Preamble of Valuing Employee Stock Today Act do?

This bill proposes to amend the Fair Labor Standards Act of 1938. The stated purpose is to protect worker access to employer equity. The bill was introduced in the House of Representatives on May 4, 2026, by Mr. Mackenzie.

What does SHORT TITLE. of Valuing Employee Stock Today Act do?

This bill is formally titled the Valuing Employee Stock Today Act.

What does FINDINGS. of Valuing Employee Stock Today Act do?

This section outlines findings related to the Worker Economic Opportunity Act of 2000 and its impact on overtime compensation calculations. The Worker Economic Opportunity Act of 2000 amended the Fair Labor Standards Act to exempt certain employer-provided equity awards from overtime calculations. The text states that the omission of restricted stock units (RSUs) from the original amendment was not intentional, as they were not widely used at the time. Congress intended the Worker Economic Opportunity Act to be broad and flexible to accommodate various employee equity programs. Since 2000, RSUs have become a common form of equity compensation for both salaried and hourly employees. The section concludes that RSUs should be included in the exemption from regular rate determinations under the Fair Labor Standards Act.

What does CLARIFICATION OF THE EMPLOYER EQUITY EXEMPTION FROM REGULAR of Valuing Employee Stock Today Act do?

This section amends Section 7(e)(8) of the Fair Labor Standards Act of 1938. The amendment expands the definition of a 'bona fide employee stock purchase program' to include 'restricted stock unit program'. The amendment modifies subparagraph (C) to include 'acceptance' alongside 'exercise' regarding stock options. The amendments made by this section will take effect 90 days after the date of enactment of this Act.

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Valuing Employee Stock Today Act

Last updated: 5/4/2026 · Introduced: 5/4/2026

Author: Ryan Mackenzie (R-PA)

TL;DR (AI)

This bill amends the Fair Labor Standards Act to include restricted stock units (RSUs) within the exemption from overtime calculations, aligning with Congress's intent to create a broad exemption for employee equity programs.
The bill expands the definition of a 'bona fide employee stock purchase program' to specifically include 'restricted stock unit programs'.
The legislation modifies regulations regarding stock options, specifying that 'acceptance' alongside 'exercise' should be considered.

119th Congressin committeeOfficial page

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Other Sections

Includes provisions on preamble, short title., and 2 more.

4 sections

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