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This bill would change how overtime pay is calculated under federal labor law. It says that certain child care and dependent care benefits offered by an employer would not count as part of an employee’s regular pay rate when figuring overtime. In simple terms, if a worker gets help with child care or elder care from their employer, that benefit would not make their overtime pay go up. The change is meant to make it easier for employers to offer these kinds of care benefits without increasing overtime costs.
- It applies to payments, reimbursements, and the value of child or dependent care services provided by an employer.
- These care benefits would be excluded from the pay rate used to calculate overtime under the Fair Labor Standards Act.
- The change would start for overtime owed for workweeks beginning on or after the day the bill becomes law.
Official Summaries
Empowering Employer Child and Elder Care Solutions Act
This 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.
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2270 Reported in House (RH)]
<DOC>
Union Calendar No. 359
119th CONGRESS
1st Session
H. R. 2270
[Report No. 119-413]
To amend the Fair Labor Standards Act of 1938 to exclude child and
dependent care services and payments from the rate used to compute
overtime compensation.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 21, 2025
Mr. Messmer (for himself, Mr. Moolenaar, Mrs. Hinson, and Mr. Harder of
California) introduced the following bill; which was referred to the
Committee on Education and Workforce
December 18, 2025
Additional sponsors: Mr. Thompson of Pennsylvania, Ms. Stefanik, Mr.
Fine, Mr. Harris of North Carolina, and Mr. Onder
December 18, 2025
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed
in italic]
[For text of introduced bill, see copy of bill as introduced on March
21, 2025]
_______________________________________________________________________
A BILL
To amend the Fair Labor Standards Act of 1938 to exclude child and
dependent care services and payments from the rate used to compute
overtime compensation.
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Empowering Employer Child and Elder
Care Solutions Act''.
SEC. 2. EXCLUSION OF CHILD AND DEPENDENT CARE IN COMPUTING OVERTIME
COMPENSATION.
(a) In General.--Section 7(e) of the Fair Labor Standards Act of
1938 (29 U.S.C. 207(e)) is amended--
(1) in paragraph (2), by inserting ``payments or
reimbursements for child or dependent care services;'' after
``by the employer;'';
(2) in paragraph (7), by striking ``or'' at the end;
(3) in paragraph (8)(D)(ii), by striking the period at the
end and inserting ``; or''; and
(4) by adding at the end the following:
``(9) the value of any child or dependent care services
provided by an employer.''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply with respect to overtime compensation required to be paid for
workweeks beginning on or after the date of enactment of this Act.
Union Calendar No. 359
119th CONGRESS
1st Session
H. R. 2270
[Report No. 119-413]
_______________________________________________________________________
A BILL
To amend the Fair Labor Standards Act of 1938 to exclude child and
dependent care services and payments from the rate used to compute
overtime compensation.
_______________________________________________________________________
December 18, 2025
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed