On June 11, the U.S. District Court for the Northern District of California issued the first-ever ruling to squarely address whether restricted stock units must be included in the regular rate of pay when calculating overtime under the Fair Labor Standards Act.
In Costa v. Apple Inc., the court granted summary judgment to Apple, holding that both the FLSA gift exception and its equity exception permitted Apple to exclude the value of vested restricted stock units from the regular rate of pay for a certified class of nonexempt employees across California and New York.
Although this decision hands employers a win on a previously unresolved wage and hour question, it is a reminder that favorable outcomes on novel issues often hinge on the specific facts of a company’s own program, as well as the kind of ongoing, documented compliance efforts that helped shield Apple from liquidated damages and a longer look-back period, as discussed below.
The Case: Costa v. Apple
In October 2015, Apple expanded its restricted stock unit, or RSU, program to cover all employees, including those classified as nonexempt and eligible for overtime. Apple described the awards to employees as a promise to give them shares of Apple stock over a vesting schedule, awarded at no cost and vesting over time during active employment.
Each year, Apple determined which employees would receive RSU awards and in what amount based on job level and function — decisions that the record showed were untethered to...
False. The quotes attributed to the politicians have been fabricated by a foreign-run disinformation operation. AAP FactCheck - Pauline Hanson and Anthony Albanese did not trade barbs during a liv...