Number: RL30542
Title: STOCK OPTIONS AND OVERTIME PAY CALCULATIONS UNDER THE FAIR LABOR STANDARDS ACT
Authors: William G. Whittaker, Domestic Social Policy Division 
Abstract: The Fair Labor Standards Act requires that covered workers be paid 1-1/2 their regular rate of pay for hours worked in excess of 40 in a single work week. Where cash wages are involved, the calculation is reasonably clear but, where workers receive stock options or related items of value, it may be less so. To clarify the issue, legislation has been introduced both in the House and the Senate. This report looks at calculation of the regular rate and at legislative efforts to render that calculation clearer.
Pages: 8
Date: Updated May 30, 2000