U.S. Department of Labor Issues Proposal to Update the FLSA’s Regular Rate Regulations
March 28, 2019
|The U.S. Department of Labor recently announced a proposed rule to clarify and update the regulations governing regular rate requirements for the first time in more than 50 years.|
Regular rate requirements define what forms of payment employers include and exclude in the “time and one-half” calculation when determining workers’ overtime rates.
Under current rules, employers are discouraged from offering more perks to their employees as those perks may be vaguely defined in calculating an employees’ regular rate of pay. The proposed rule focuses primarily on clarifying whether certain kinds of perks, benefits, or other miscellaneous items must be included in the regular rate. Because these regulations have not been updated in decades, the proposal would better define the regular rate for today’s workplace practices.
The Department proposes clarifications to confirm that employers may exclude the following from an employee’s regular rate of pay:
The proposed rule also includes additional clarification about other forms of compensation, including payment for meal periods, “call back” pay, and others.
More information about the proposed rule is available at www.dol.gov/whd/overtime/regularrate2019.htm.
The Department encourages interested members of the public to submit comments about the proposed rule electronically at www.regulations.gov, in the rulemaking docket RIN 1235-AA24. Comments must be submitted by 11:59 pm on May 28, 2019 in order to be considered.