Calculating the Regular Rate of Pay

Employers now have more clarity and flexibility about which perks they can include in workers’ “regular rate” of pay, which is used to calculate overtime premiums under the Fair Labor Standards Act (FLSA). The U.S. Department of Labor¬†(DOL)¬†announced a final rule that will take effect Jan. 15, 2020.

The rule marks the first significant update to the regulations governing regular rate requirements under the Fair Labor Standards Act (FLSA) in over 50 years. Here’s how the new law will impact employers.