H.R.4182 - Worker Economic Opportunity Act106th Congress (1999-2000)
|Sponsor:||Rep. Cunningham, Randy (Duke) [R-CA-51] (Introduced 04/05/2000)|
|Committees:||House - Education and the Workforce|
|Latest Action:||House - 05/23/2000 Referred to the Subcommittee on Workforce Protections. (All Actions)|
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Text: H.R.4182 — 106th Congress (1999-2000)All Information (Except Text)
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Introduced in House (04/05/2000)
[Congressional Bills 106th Congress] [From the U.S. Government Printing Office] [H.R. 4182 Introduced in House (IH)] 106th CONGRESS 2d Session H. R. 4182 To amend the Fair Labor Standards Act of 1938 to clarify the treatment of stock options under the Act. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES April 5, 2000 Mr. Cunningham (for himself, Mr. Ballenger, Mr. Kuykendall, Mr. Davis of Virginia, Mr. Moran of Virginia, Mr. Roemer, Mr. Dooley of California, Ms. Eshoo, Mr. Kind, Mr. Ose, Mr. Hoekstra, Mr. Aderholt, Mr. Paul, Mr. Sam Johnson of Texas, Mr. Armey, Mr. Ehrlich, Mr. Blunt, Mr. Goodling, Mr. Boehner, and Mr. Tancredo) introduced the following bill; which was referred to the Committee on Education and the Workforce _______________________________________________________________________ A BILL To amend the Fair Labor Standards Act of 1938 to clarify the treatment of stock options under the Act. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Worker Economic Opportunity Act''. SEC. 2. AMENDMENTS TO THE FAIR LABOR STANDARDS ACT OF 1938. (a) Exclusion From Regular Rate.--Section 7(e) of the Fair Labor Standards Act of 1938 (29 U.S.C. 207(e)) is amended-- (1) in paragraph (6), by striking ``or'' at the end; (2) in paragraph (7), by striking the period and inserting ``; or''; and (3) by adding at the end the following: ``(8) 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 which is not otherwise excludable under any of paragraphs (1) through (7) if-- ``(A) grants are made pursuant to a program, the terms and conditions of which are communicated to participating employees either at the beginning of the employee's participation in the program or at the time of the grant; ``(B) in the case of stock options and stock appreciation rights, the grant or right cannot be exercisable for a period of at least 6 months after the time of grant (except that grants or rights may become exercisable because of an employee's death, disability, retirement, or a change in corporate ownership, or other circumstances permitted by regulation), and the exercise price is at least 85 percent of the fair market value of the stock at the time of grant; ``(C) exercise of any grant or right is voluntary; and ``(D) any determinations regarding the award of, and the amount of, employer-provided grants or rights that are based on performance are-- ``(i) made based upon meeting previously established performance criteria (which may include hours of work, efficiency, or productivity) of any business unit consisting of at least 10 employees or of a facility, except that, any determinations may be based on length of service or minimum schedule of hours or days of work; or ``(ii) made based upon the past performance (which may include any criteria) of one or more employees in a given period so long as the determination is in the sole discretion of the employer and not pursuant to any prior contract.''. (b) Extra Compensation.--Section 7(h) of the Fair Labor Standards Act of 1938 (29 U.S.C. 207(h)) is amended-- (1) by striking ``Extra'' and inserting the following: ``(2) Extra''; and (2) by inserting after the subsection designation the following: ``(1) Except as provided in paragraph (2), sums excluded from the regular rate pursuant to subsection (e) shall not be creditable toward wages required under section 6 or overtime compensation required under this section.''. (c) Effective Date.--The amendments made by this section shall take effect on the date that is 90 days after the date of enactment of this Act. (d) Liability of Employers.--No employer shall be liable under the Fair Labor Standards Act of 1938 for any failure to include in an employee's regular rate (as defined for purposes of such Act) any income or value derived from employer-provided grants or rights obtained pursuant to any stock option, stock appreciation right, or employee stock purchase program if-- (1) the grants or rights were obtained before the effective date described in subsection (c); (2) the grants or rights were obtained within the 12-month period beginning on the effective date described in subsection (c), so long as such program was in existence on the date of enactment of this Act and will require shareholder approval to modify such program to comply with section 7(e)(8) of the Fair Labor Standards Act of 1938 (as added by the amendments made by subsection (a)); or (3) such program is provided under a collective bargaining agreement that is in effect on the effective date described in subsection (c). (e) Regulations.--The Secretary of Labor may promulgate such regulations as may be necessary to carry out the amendments made by this Act. <all>