2 versions

CosmeticWhat changed in REPORTED IN HOUSEcompared with INTRODUCED IN HOUSE (Mar 21, 2025)

Technical corrections only. The reported version (v2) includes additional sponsors and procedural updates regarding its status in the House, such as being reported out of committee. The operative legislative text of the bill remains identical to the introduced version (v1), with no substantive policy changes.

H.R. 2270119th CongressIntroduced Mar 21, 2025

Empowering Employer Child and Elder Care Solutions Act

Reported To HouseLabor and EmploymentSubstantive

View bill text

Sponsor: Rep. Messmer, Mark [R-IN-8]
Committees: Education and Workforce Committee (primary)
Last action: Jan 13, 2026

Bottom line

The bill aims to incentivize employers to offer child and dependent care benefits by ensuring these benefits do not increase their overtime compensation costs.

What it actually does

This bill amends the Fair Labor Standards Act of 1938 (FLSA) to explicitly exclude the value of employer-provided child or dependent care services, as well as payments or reimbursements for such services, from an employee's 'regular rate' of pay. The 'regular rate' is the basis for calculating overtime compensation. By excluding these benefits, employers would not be required to factor them into the calculation of time-and-a-half pay for hours worked beyond 40 in a workweek.

Proponents argue

Supporters argue that this bill removes a disincentive for employers to offer valuable child and dependent care benefits, which are crucial for working families. They contend that by clarifying these benefits are not part of the regular rate for overtime, employers will be more willing to provide them, thereby helping employees manage care responsibilities and promoting workforce participation. This flexibility is presented as a win-win for both businesses and their employees.

Opponents contend

Critics might argue that excluding these benefits from overtime calculations could effectively dilute the value of overtime pay for employees receiving such benefits. They may contend that all forms of compensation, including the value of significant benefits like child or dependent care, should be factored into the regular rate to ensure that overtime truly reflects time-and-a-half of an employee's total earnings. Opponents could also suggest this might complicate wage transparency and potentially lead to lower overall compensation for employees working extra hours.

The bill is very short and clear, making it highly accessible for a reader to understand its core change quickly.

Section 2(a), amending 29 U.S.C. 207(e)

Exclusion of Child and Dependent Care from Overtime Rate Calculation

prominently featuredstraightforward

This provision modifies the Fair Labor Standards Act (FLSA) to specify that payments, reimbursements, or the value of services provided by an employer for child or dependent care will not be included when calculating an employee's 'regular rate' of pay. The 'regular rate' is the hourly wage from which overtime compensation (time-and-a-half) is derived. By excluding these benefits, employers will not incur higher overtime costs solely due to offering child or dependent care support to their employees.

GroupImpactMechanismScale

GroupEmployers offering child/dependent care benefitsImpactReduced potential overtime costsMechanismExclusion of benefit value from regular rate calculationScalePotentially significant for employers with many employees receiving such benefits and working overtime

GroupEmployees receiving child/dependent care benefitsImpactPotential for increased access to benefits; potentially lower effective overtime rateMechanismEmployers incentivized to offer benefits; overtime calculated on a lower base rateScaleVaries by individual employee's overtime hours and benefit value

GroupFamilies needing child/dependent careImpactIncreased availability of employer-supported care optionsMechanismEmployer incentives to provide careScaleBroad societal impact on work-life balance and care access

Supporters argue

Supporters argue that this exclusion is a practical way to encourage employers to invest in employee well-being by providing essential care services without facing increased regulatory burdens or unpredictable overtime expenses. They believe it fosters a more family-friendly workplace culture and helps retain talent.

Critics contend

Opponents might contend that this change could lead to a two-tiered system where employees receiving care benefits effectively earn less for their overtime hours compared to those who do not, or compared to if the benefits were included. They argue that it undermines the principle of overtime compensation reflecting an employee's full remuneration.

Tradeoffs

The provision balances the goal of incentivizing employer-provided benefits against the principle of including all forms of compensation in the 'regular rate' for overtime calculations. It creates a tension between promoting employer flexibility and ensuring the highest possible overtime earnings for employees.

About this analysis. AI-Generated from the official bill text and available committee reports. Gaps in available data are noted explicitly. Verify important details with the official Congress.gov record.