Empowering Employer Child and Elder Care Solutions Act
Empowering Employer Child and Elder Care Solutions Act
Plain Language Summary
# Empowering Employer Child and Elder Care Solutions Act (HR 2270) - Summary **What the Bill Does** This bill would change how overtime pay is calculated for employees. Currently, when figuring out an employee's overtime rate (which must be paid at 1.5 times their regular hourly rate), employers must include the value of most benefits provided. This bill would create an exception: if an employer offers or pays for child care or elder care services for employees, that benefit wouldn't count toward calculating overtime pay. In practical terms, an employee receiving child care assistance could receive overtime pay based on a lower number, potentially reducing what they're owed in overtime. **Who It Affects** This bill primarily affects employees who receive child or elder care benefits from their employers, and the employers offering these benefits.
It could also impact low-wage workers most significantly, since including or excluding benefits has a larger effect on their overtime calculations than higher-paid employees. **Current Status** The bill is currently in committee, meaning it has been introduced but hasn't yet been debated or voted on by the full House of Representatives. It was sponsored by Rep. Mark Messmer (R-IN).
CRS Official Summary
Empowering Employer Child and Elder Care Solutions ActThis bill excludes the value of employer-funded child or dependent care from being used in calculating an eligible employee's overtime pay.Under current law, overtime hours must be paid at one and a half times an employee's regular rate of pay. This rate is an average hourly rate that must include certain types of pay, such as commissions. The bill specifies that an employer can provide or pay for child or dependent care services without the value of the services being included in this calculation.
Latest Action
POSTPONED PROCEEDINGS - Pursuant to clause 1(c) of rule XIX, the Chair announced that further proceedings on H.R. 2270 is postponed.