DOL Updates Rules Regarding Regular Rate To Address Benefits And Perks

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.

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