Senate Passes Bill on Stock Options for Hourly Workers
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WASHINGTON — Federal labor laws would be changed to allow hourly employees to receive stock options, senators said Wednesday in passing such a measure, 95-0.
Under the 1938 Fair Labor Standards Act, an hourly employee’s stock options must be counted as part of base pay when calculating overtime.
The business community, as well as lawmakers, were concerned that the costs involved would force employers to eliminate stock options for hourly workers but not salaried employees.
The bill exempts stock option gains from overtime pay.
A similar measure is pending in the House.
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