The VEST Act amends federal wage and hour law to clarify that restricted stock units (RSUs) should be excluded from calculations of employee overtime pay, just like stock options and employee stock purchase plans. The bill addresses a gap in the Fair Labor Standards Act where RSUs were not explicitly mentioned when the original exemption was created in 2000, even though Congress intended the exemption to be flexible enough to cover various types of employee equity compensation. The law applies to all employees receiving equity compensation from their employers, particularly salaried and hourly workers. The changes take effect 90 days after the bill is signed into law, and employers are protected from liability for past or near-term violations if they were operating existing RSU programs before the new rules took effect or if their programs are covered by union agreements.
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