DOL Publishes Final Regular Rate Clarifications

The U.S. Department of Labor’s Wage and Hour Division announced that the final rule to calculate “Regular Rate” of pay for overtime calculations would be published on December 16th. The final rule will be effective as of January 15, 2020.

The rule marks the first significant update to the regulations governing regular rate requirements under the Fair Labor Standards Act (FLSA) in over 50 years. Those requirements define what forms of payment employers include and exclude in the FLSA’s “time and one-half” calculation when determining overtime rates. The rule is expected to provide employers significantly more clarity in offering perks and benefits to their employees, with all involved benefitting from these changes. The DOL has published a fact sheet and FAQs outlining the key provisions of the rule, along with examples of some of the types of benefits the clarifications will address.

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