Bill Aims to Resolve Stock Options Dispute

A bipartisan group of lawmakers and the Labor Department moved to end a dispute over whether profits from workers’ stock options should be counted when determining overtime pay. Legislation to exempt hourly employees’ stock option gains from overtime-pay calculations was introduced in both the House and Senate. Backers say passage will encourage companies to give stock options to more than just top managers. “American workers have been driving our nation’s prosperity. They shouldn’t take a back seat when it comes to sharing in that prosperity,” said Sen. Christopher J. Dodd (D-Conn.), one of the sponsors. The bill was drafted in response to complaints from businesses after the Labor Department advised employers to include stock option profits as part of the base pay used to calculate overtime. Business groups had called that difficult and expensive to comply with. The bill is expected to have little opposition. It was drafted in collaboration with the Labor Department and is supported by the Clinton administration.