IB

Union Calendar No. 201

106TH CONGRESS

1ST SESSION H. R. 1381

[Report No. 106–358]

To amend the Fair Labor Standards Act of 1938 to provide that an employee’s ‘‘regular rate’’ for purposes of calculating overtime compensation

will not be affected by certain additional payments.

IN THE HOUSE OF REPRESENTATIVES

APRIL 13, 1999

Mr. BALLENGER (for himself, Mr. GOODLING, and Mr. DICKEY) introduced

the following bill; which was referred to the Committee on Education and

the Workforce

OCTOBER 1, 1999

Additional sponsors: Mr. PAUL, Mr. NORWOOD, Mr. DEAL of Georgia, Mr.

HILLEARY, Mr. BARRETT of Nebraska, Mr. BOEHNER, Mr. MILLER of

Florida, Mr. DUNCAN, Mr. BARTLETT of Maryland, Mr. SHUSTER, Mr.

SKEEN, and Mr. KNOLLENBERG

OCTOBER 1, 1999

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]

A BILL

To amend the Fair Labor Standards Act of 1938 to provide

that an employee’s ‘‘regular rate’’ for purposes of calculating overtime compensation will not be affected by certain additional payments.
2

•HR 1381 RH

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Rewarding Perform5 ance in Compensation Act’’.

6 SEC. 2. REGULAR RATE.

7 Section 7(e)(3) of the Fair Labor Standards Act of

8 1938 (29 U.S.C. 207(e)(3)) is amended by inserting be9 fore the semicolon at the end the following: ‘‘; or (d) the

10 payments are made to reward an employee or group of

11 employees for meeting or exceeding the productivity, qual12 ity, efficiency, or sales goals as specified in a gainsharing,

13 incentive bonus, commission, or performance contingent

14 bonus plan’’.

15 SECTION 1. SHORT TITLE.

16 This Act may be cited as the ‘‘Rewarding Performance

17 in Compensation Act’’.

18 SEC. 2. REGULAR RATE FOR OVERTIME PURPOSES.

19 Section 7(e) of the Fair Labor Standards Act of 1938

20 is amended—

21 (1) by inserting before the semicolon at the end

22 of paragraph (3) the following: ‘‘; or (d) the payments

23 are made to reward an employee or group of employ24 ees for meeting or exceeding the productivity, quality,

25 efficiency, or sales goals as specified in a gainsharing,
3

•HR 1381 RH

1 incentive bonus, commission, or performance contin2 gent bonus plan’’; and

3 (2) by inserting after and below paragraph (7)

4 the following:

5 ‘‘A plan described in paragraph (3)(d) shall be in writing

6 and made available to employees, provide that the amount

7 of the payments to be made under the plan be based upon

8 a formula that is stated in the plan, and be established and

9 maintained in good faith for the purpose of distributing

10 to employees additional remuneration over and above the

11 wages and salaries that are not dependent upon the exist12 ence of such plan or payments made pursuant to such

13 plan.’’.
Union Calendar No. 201

106TH CONGRESS

1ST SESSION H. R. 1381

[Report No. 106–358]

A BILL

To amend the Fair Labor Standards Act of 1938

to provide that an employee’s ‘‘regular rate’’ forpurposes of calculating overtime compensationwill not be affected by certain additional payments.

OCTOBER 1, 1999

Reported with an amendment, committed to the Committee of the Whole House on the State of the Union,

and ordered to be printed