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Excludes the value of child or dependent care services that an employer provides from the regular‑rate calculation used to determine overtime pay under the Fair Labor Standards Act. In other words, when computing overtime for a covered workweek, employers would not have to count the monetary value of employer‑provided child or dependent care as part of the employee’s regular rate of pay.
This change takes effect for workweeks beginning on or after the date the law is enacted. The immediate effect is to reduce the overtime pay base for employees who receive employer‑provided care (lowering the overtime dollars they receive) and to reduce employers’ overtime costs; it may also change employer incentives about offering in‑kind benefits versus cash pay and could prompt administrative guidance or litigation about how to value and document such benefits.
Introduced March 21, 2025 by Mark B. Messmer · Last progress 11 months ago
Referred to the House Committee on Education and Workforce.