Mackenzie Introduces Legislation to Expand Access to Equity Compensation for Workers

Washington, D.C. — Today, Congressman Ryan Mackenzie (PA-07), representing the Lehigh Valley and the Poconos, introduced the Valuing Employee Stock Today Act, which modernizes federal labor law and expands access to equity compensation for workers.

The bill updates the Fair Labor Standards Act to clarify that restricted stock units (RSUs)—a common form of employee compensation—are not counted toward an employee’s regular rate of pay when calculating overtime. 

“Workers should have the opportunity to benefit from the success of the companies they work for,” said Congressman Mackenzie. “This bill makes a straightforward update to federal law so employers can offer equity compensation like restricted stock units without creating additional regulatory burdens, helping workers build long-term financial security and supporting job retention.”

"The Valuing Employee Stock Today Act updates federal law to better serve today’s workplace by making equity compensation more accessible. Most importantly, it removes unnecessary barriers so more workers can share in the success they help create. That means stronger retention, smarter compensation, and more opportunities for workers to build real financial security," said Education and Workforce Chairman Tim Walberg (R-MI).

“This bill provides much-needed clarity under the Fair Labor Standards Act to ensure that employer equity awards—including restricted stock units—can continue to be offered without creating unintended overtime-calculation distortions or litigation uncertainty. Equity is a critical tool for helping workers share in the value they help build, strengthening retention, engagement, and long-term wealth creation. The CHRO Association supports this targeted clarification so employers can responsibly expand access to equity compensation while maintaining clear, consistent wage-and-hour compliance,” said Chatrane Birbal, SVP, Public Policy & Government Relations, CHRO Association.
While federal law already excludes certain types of equity compensation, such as stock options and employee stock purchase programs, RSUs were not explicitly included when the law was last updated. The Valuing Employee Stock Today Act brings RSUs in line with those existing benefits by ensuring they are treated consistently under overtime rules. 

By making this clarification, the legislation will:

• Encourage more employers to offer equity-based compensation
• Provide workers with additional tools to build financial stability
• Support workforce retention and long-term employment

Bill text is available HERE.