[Congressional Record Volume 146, Number 53 (Wednesday, May 3, 2000)]
[Extensions of Remarks]
[Page E628]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             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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