News and Information

December 30, 2019 • News

USDOL Updates FLSA Regular Rate Requirements for Calculating OT

Effective January 15, 2020, when calculating employees’ regular rate of pay to determine overtime pay, employers may exclude certain “perks” and benefits, including:

These clarifications are part of the U.S. Department of Labor (USDOL) Final Rule updating regular rate requirements under the Fair Labor Standards Act (FLSA), published in the Federal Register on December 16, 2019.

Two substantive changes made to the regulations include:

This rule marks the first significant change to the regulations in more than 50 years.

For more details, see the USDOL press release or its Fact Sheet; see also the final rule.

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