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Stock Value

Calculating stock options into a worker's base pay is creating debate.

This story appears in the June 2000 issue of Entrepreneur. Subscribe »

Negotiations are underway between small-business groups and the Labor Department about including stock options in the calculation of base pay to figure out the overtime pay of hourly workers.

The Labor Department's Wage and Hour division (WHD) shook up the business community after it found out about an "opinion" letter from the division to an unnamed company, which told the company it couldn't exclude profits made from the sale of stock options from an hourly employee's base pay (or "regular rate" in Labor Department parlance).

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