119th Congress (2025-2026)

HR 8660

Valuing Employee Stock Today Act

Introduced

Jurisdiction

US Congress

Session

119th Congress (2025-2026)

Official source

Chamber

House

Session

119th Congress (2025-2026)

Jurisdiction

US Congress

Bill overview

This bill, the Valuing Employee Stock Today Act, seeks to clarify the Fair Labor Standards Act to ensure that employee stock awards, specifically restricted stock units, are properly considered when calculating overtime pay. The bill amends existing law to explicitly include restricted stock unit programs within the exemption for employer-provided equity compensation. This change aims to better reflect the prevalence of restricted stock units as a form of employee compensation since 2000.

Key provisions

Expands the existing exemption in the Fair Labor Standards Act to include restricted stock unit programs.
Specifically amends Section 7(e)(8) of the Fair Labor Standards Act to clarify the definition of qualifying equity programs.
Updates the language to include ‘restricted stock unit program’ instead of just ‘bona fide employee stock purchase program’.
Changes ‘exercise’ to ‘exercise or acceptance’ within the overtime calculation.
Provides a 90-day effective date for the changes.

Who is affected

Employees
Employers
Businesses
Overtime wage earners

Notable changes

Explicitly includes restricted stock units within the overtime exemption.
Updates the wording of the Fair Labor Standards Act to reflect current equity compensation practices.

Positions across the country

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Legislative history

2026-05-04House

Referred to the House Committee on Education and Workforce.

2026-05-04

Introduced in House

2026-05-04

Introduced in House

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May 4, 2026XMLView source

119th CONGRESS — 2d Session

H. R. 8660

IN THE HOUSE OF REPRESENTATIVES

A BILL

To amend the Fair Labor Standards Act of 1938 to protect worker access to employer equity, and for other purposes.

1.Short title

This Act may be cited as the

Valuing Employee Stock Today Act

2.Findings

Congress finds the following:

(1)The Worker Economic Opportunity Act of 2000 (Public Law 106–202) amended section 7(e) of the Fair Labor Standards Act of 1938 (29 U.S.C. 207(e)) by adding a new paragraph (8) to such section 7(e) to exempt any value or income derived from employer-provided grants or rights provided pursuant to a stock option, stock appreciation right, or bona fide employee stock purchase program from the determination of an employee’s regular rate for purposes of calculating such employee’s overtime compensation.

(2)The lack of explicit mention of restricted stock units in paragraph (8) of section 7(e) of the Fair Labor Standards Act of 1938 (29 U.S.C. 207(e)), as added by the Worker Economic Opportunity Act of 2000 (Public Law 106–202), was not an intentional exclusion from such paragraph (8), but a reflection that this type of equity award was not commonly used as of the date of enactment of the Worker Economic Opportunity Act of 2000 (Public Law 106–202).

(3)Congress clearly established in the Joint Statement of Legislative Intent accompanying the Worker Economic Opportunity Act of 2000 (Public Law 106–202) that such Act was designed to be broad and flexible enough to accommodate a wide variety of [employee equity] programs and to be flexible and forward-looking and interpreted consistent with its purpose to encourage employers to provide opportunities for equity participation to employees.

(4)In the years since 2000, restricted stock units have become a highly common form of equity for both salaried and hourly employees that, consistent with the Joint Statement of Legislative Intent accompanying the Worker Economic Opportunity Act of 2000 (Public Law 106–202), allow employees to share in the future success of their companies through a mechanism that may not otherwise be available to rank-and-file workers.

(5)Restricted stock units should qualify for the exemption from regular rate determinations under paragraph (8) of section 7(e) of the Fair Labor Standards Act of 1938 (29 U.S.C. 207(e)(8)) because such paragraph would have explicitly mentioned restricted stock units as qualifying for such exemption had restricted stock units been a common form of employer-provided equity compensation as of the date of enactment of the Worker Economic Opportunity Act of 2000 (Public Law 106–202).

3.Clarification of the employer equity exemption from regular rate determinations

(a)ClarificationSection 7(e)(8) of the Fair Labor Standards Act of 1938 (29 U.S.C. 207(e)(8)) is amended—

(1)

in the matter preceding subparagraph (A), by striking or bona fide employee stock purchase program and inserting bona fide employee stock purchase program, or restricted stock unit program; and

(2)

in subparagraph (C), by striking exercise and inserting exercise or acceptance.

(b)Effective dateThe amendments made by this section shall take effect on the date that is 90 days after the date of enactment of this Act.

HR 8660

Bill overview

Key provisions

Who is affected

Notable changes

Sponsors

Primary sponsor

Positions across the country

Arguments in favor

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Bill text

Positions across the country