Department of Labor Updates Regulations on Regular Rate of Pay
The Department of Labor recently published a final rule clarifying how employers calculate overtime pay. Employees who work overtime are generally entitled to “time and one-half” of their regular rate of pay, but employers have lacked interpretive guidance to determine what to include and exclude in the regular rate of pay. The final rule allows employers to exclude from the regular rate of pay benefits such as wellness program, payments for unused PTO, various reimbursements (exam fees, cellphone plans, membership dues), and certain bonuses.
For more information, see the U.S. Department of Labor Wage and Hour Division summary Final Rule: Regular Rate under the Fair Labor Standards Act.