DOL’s letter may aid in overtime calculations for piece-rate workers under the FLSA. Per agency guidance, employees paid on a piece-rate basis are generally entitled to an additional one-half times their regular rate of pay for each hour over 40 in a given workweek, plus their full piecework earnings.
The department has issued a number of opinion letters in the past year addressing what may be included in an employee’s regular rate of pay for FLSA overtime calculation purposes. In March, for example, DOL said that a longevity bonus must be included in the regular rate, as must certain installments of a referral bonus.
