The Congressional Record is a unique source of public documentation. It started in 1873, documenting nearly all the major and minor policies being discussed and debated.
“IN SUPPORT OF WORKER ECONOMIC OPPORTUNITY ACT” mentioning the U.S. Dept of Labor was published in the Extensions of Remarks section on pages E628 on May 3, 2000.
The publication is reproduced in full below:
IN SUPPORT OF WORKER ECONOMIC OPPORTUNITY ACT
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HON. ANNA G. ESHOO
of california
in the house of representatives
Wednesday, May 3, 2000
Ms. ESHOO. Mr. Speaker, I rise in support of Senate Bill 2323, the Worker Economic Opportunity Act. I am a proud cosponsor of this legislation that amends the Fair Labor Standards Act and allows hourly employees to take advantage of stock option plans offered by their companies.
Mr. Speaker, one of the reasons we call the New Economy the New Economy is because of the new opportunities and new wealth created by the groundkeeping technology industries. And in these technology industries, new opportunities for sharing in the wealth and success of companies are available to everyone.
In old business models, many junior employees were paid an hourly wage and if they gained some sonority they might be offered some type of stock purchase plan. In the new model used by technology companies, every employee gets to share in the wealth of it. When employees join the company, they have an opportunity to own a piece of the company. When the company goes public, they can exercise their options and share in the company's success.
In my District--which includes Silicon Valley--new companies are born every day. One reason people are attracted to this area and are willing to work at an hourly wage is because they can share in the dream of achieving the success and wealth created by these companies.
The Department of Labor took a shortsighted approach when it issued its opinion last year stating that stock option plans are not exempt from the regular rate of pay provisions. I'm pleased that the Labor Department now supports this bill which amends the current law, thereby voiding its earlier opinion.
Mr. Speaker, the Federal Reserve estimates that in the last two years approximately 17 percent of U.S. firms have introduced stock option programs. Additionally, another 37 percent have broadened the eligibility in their existing plans. This legislation is about expanding the winner's circle for employees. If the Labor Department's initial view on this issue were allowed to stand, it would have resulted in the exclusion of hourly workers participating in the financial success of the businesses they have had in shaping.
There are secretaries and other hourly wage workers in my Congressional District who have become millionaires because of the success of their stock option plans. This wouldn't have happened if their option plan had been calculated into their overtime pay table. This has happened because companies with vision created business plans that included a model where every employee benefits when the company succeeds.
We should exercise the same vision and pass this legislation.
Mr. Speaker, I urge a ``yes'' vote on this legislation.
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