The Valuing Employee Stock Today Act would amend federal wage and hour laws to clarify that restricted stock units (RSUs) are treated the same way as stock options and employee stock purchase plans when calculating overtime pay. Currently, the law exempts the value of certain stock-based compensation from being counted toward an employee's regular rate of pay, which affects how overtime compensation is calculated, but restricted stock units were not explicitly mentioned in the existing statute even though they have become a common form of employee compensation. The bill would add RSUs to this exemption, allowing employers to provide this type of equity compensation to workers without it increasing overtime obligations. The legislation would take effect 90 days after enactment and applies to all employees receiving RSUs from their employers. No specific funding is allocated in the bill, as it is a clarification of existing tax and wage rules rather than a spending measure.
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