Child Care Overtime Pay Bill

Official: Empowering Employer Child and Elder Care Solutions Act

IntroducedMarch 21, 2025

Labor and EmploymentChild care and developmentFamily servicesLabor standardsWages and earnings

Why This Matters

This bill allows employers to provide child and dependent care services without increasing their overtime pay costs. It encourages businesses to support their employees with care solutions.

If you receive child care benefits from your job, your overtime pay won't be affected by those benefits.

Affects: This bill affects workers who receive child and dependent care benefits from their employers.

Summary

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.

What changes is this bill making?

1. This bill changes how overtime pay is calculated for workers. 2. It excludes payments for child and dependent care from overtime calculations. 3. Employers can provide child and dependent care services without affecting overtime rates. 4. The change applies to workweeks starting after the bill becomes law. 5. This aims to support employers offering child and elder care benefits.

Who is affected?

This bill affects workers who receive child and dependent care benefits from their employers.