DOL Updates Rules Regarding Regular Rate To Address Benefits And Perks

Volume: 18 | Issue: 23
December 18, 2019

The U.S. Department of Labor (DOL) has updated its regulation governing regular rate requirements under the Fair Labor Standards Act (FLSA). This regulation defines what forms of payment employers should include and exclude in the “time and one-half” calculation when determining overtime rates. This update to the regular rate regulation is specifically designed to clarify “which perks and benefits must be included in the regular rate of pay, as well as which perks and benefits an employer may provide without including them in the regular rate of pay.” It also includes clarification about other forms of compensation, including payment for meal periods and “call back” pay.

All employers are encouraged to review the DOL’s Fact Sheet regarding this updated guidance as you may find it helpful. Please contact a KZA attorney with any questions about the regular rate calculation. The updated regulation becomes effective on January 15, 2020.

KZA Employer Report articles are for general information only; they are not intended and should not be construed to be legal advice. Reading or replying to such articles does not establish an attorney-client relationship. In addition, because the subject matters and applicable laws discussed in Employer Report articles are often in a state of change and not always applicable to every type of business entity or organization, readers should consult with counsel before making decisions based on the same.

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