Page:United States Statutes at Large Volume 114 Part 1.djvu/344

 114 STAT. 308 PUBLIC LAW 106-202—MAY 18, 2000 Public Law 106-202 106th Congress An Act May 18, 2000 To amend the Fair Labor Standards Act of 1938 to clarify the treatment of stock [S. 2323] options under the Act. Be it enacted by the Senate and House of Representatives of Worker Economic the United States of America in Congress assembled, Opportunity Act. 29 USC 201 note. SECTION 1. SHORT TITLE. This Act may be cited as the "Worker Economic Opportunity Act". SEC. 2. AMENDMENTS TO THE FAIR LABOR STANDARDS ACT OF 1938. (a) EXCLUSION FROM REGULAR RATE.— Section 7(e) of the Fair Labor Standards Act of 1938 (29 U.S.C. 207(e)) is amended— (1) in paragraph (6), lay striking "or" at the end; (2) in paragraph (7), by striking the period and inserting "; or"; and (3) by adding at the end the following: "(8) any value or income derived from employer-provided grants or rights provided pursuant to a stock option, stock appreciation right, or bona fide employee stock purchase program which is not otherwise excludable under any of paragraphs (1) through (7) if— "(A) grants are made pursuant to a program, the terms and conditions of which are communicated to participating employees either at the beginning of the employee's participation in the program or at the time of the grant; "(B) in the case of stock options and stock appreciation rights, the grant or right cannot be exercisable for a period of at least 6 months after the time of grant (except that grants or rights may become exercisable because of an employee's death, disability, retirement, or a change in corporate ownership, or other circumstances permitted by regulation), and the exercise price is at least 85 percent of the fair market value of the stock at the time of grant; "(C) exercise of any grant or right is voluntary; and "(D) any determinations regarding the award of, and the amount of, employer-provided grants or rights that are based on performance are— "(i) made based upon meeting previously established performance criteria (which may include hours of work, efficiency, or productivity) of any business unit consisting of at least 10 employees or of a facility, except that, any determinations may be based on length of service or minimum schedule of hours or days of work; or

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