Congress clarifies: Stock options are benefits, not pay — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Congress clarifies: Stock options are benefits, not pay

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in Human Resources

If you give stock options to nonexempt workers, don't worry that the additional compensation will drive up their overtime pay. President Clinton has signed legislation making it clear that stock options don't need to be included in computing a worker's "regular rate of pay," which is used to calculate overtime pay.

The new law, P.L. 106-202, overturned a recent Labor Department ruling. The law doesn't take effect until August, but it also protects all stock plans in place before it was enacted.

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