With a stated aim of providing clarification on how to determine employees’ regular rate of pay, the U.S. Department of Labor (DOL) has announced a new proposed rule updating what forms of payment employers can include and exclude in the “time and one-half” overtime pay calculation.
That clarification is needed, according to attorneys who work with employers on compensation matters.
The Fair Labor Standards Act (FLSA) requires that nonexempt employees—those who are eligible for overtime pay—be paid 1½ times their “regular rate of pay” for all hours worked over 40 in a workweek.
