Empowering Employer Child and Elder Care Solutions Act
This bill would change how overtime pay is calculated under the Fair Labor Standards Act (FLSA). It would explicitly exclude from the regular rate used to compute overtime two kinds of employer-provided childcare-related benefits: (1) payments or reimbursements that an employer provides for child or dependent care services, and (2) the value of any child or dependent care services provided directly by the employer. The net effect is that these childcare benefits would not be counted when determining the regular rate, which in turn lowers the overtime rate for hours worked beyond 40 in a week for employees who receive these benefits. The change would apply to workweeks starting on or after the date the bill is enacted. Note: while the bill’s title mentions elder care, the text as introduced focuses on child or dependent care services.
Key Points
- 1Adds a new exclusion: payments or reimbursements for child or dependent care services would be excluded from the regular rate used to compute overtime (7(e)(2) as amended).
- 2Adds a new exclusion: the value of any child or dependent care services provided by an employer would be excluded from the regular rate (new item 7(e)(9)).
- 3Removes a punctuation gap in the existing structure to accommodate the new exclusion (related to how items are listed in 7(e)).
- 4Effective date: the amendments apply to overtime compensation for workweeks beginning on or after enactment.
- 5Policy intent: framed as enabling employer-provided child and dependent care solutions, though the practical effect on workers is to lower overtime pay for those benefiting from such childcare arrangements.