Bill Summary
The "Empowering Employer Child and Elder Care Solutions Act" seeks to amend the Fair Labor Standards Act of 1938 by modifying how overtime compensation is calculated. Specifically, it aims to exclude payments or reimbursements for child and dependent care services, as well as the value of such services provided by employers, from the overtime compensation rate. This means that when determining an employee's overtime pay, employers would not have to factor in these specific care-related benefits. The amendment would take effect for workweeks beginning after the law is enacted, thereby allowing businesses to offer child and dependent care support without impacting their overtime calculations.
Possible Impacts
The proposed legislation, known as the "Empowering Employer Child and Elder Care Solutions Act," could have several effects on individuals and families. Here are three examples:
1. **Increased Wage Disparities for Caregivers**: By excluding child and dependent care services from the calculation of overtime compensation, caregivers who work overtime may see a reduction in their overall earnings. This could disproportionately affect workers in child and elder care positions, who often rely on overtime pay to make ends meet. As a result, it may lead to financial strain for those workers, potentially impacting their ability to afford necessary care for their own dependents.
2. **Encouragement of Employer-Provided Care Benefits**: Employers may be incentivized to offer more child and dependent care services as part of their employee benefits package since these costs would not be factored into overtime calculations. This could lead to an increase in the availability of on-site childcare or reimbursement programs, which would benefit working parents by making it easier to balance work and family responsibilities. Enhanced employer-sponsored care options could also contribute to improved employee morale and retention.
3. **Impact on Workforce Participation**: The exclusion of child and dependent care services from overtime compensation calculations might adversely affect the decisions of parents and caregivers regarding workforce participation. If workers feel that they cannot secure fair compensation for their caregiving responsibilities, they may choose to reduce their work hours or leave the labor force altogether. This could lead to a decrease in the overall workforce participation rate, particularly among women, who are often the primary caregivers in families, thereby affecting the economy at large.
[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