Clarifying the regular rate under FLSA

The U.S. Department of Labor (DOL) announced a Final Rule on Regular Rate Under the Fair Labor Standards Act (FLSA) on December 12, 2019 that clarifies which benefits and perks must be included in employees’ regular rate of pay and which can be excluded.

(An earlier Rule – November 24, 2019 – established new wage thresholds for determining exempt status for salaried employees and indicated that employers could use nondiscretionary bonuses and incentive pay to satisfy up to 10% of the standard salary level. You can read more information about the November 24 rule in this post.)

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More information

Follow the links below for additional information.

Press Release (12.12.19) Corrected: U.S. Department of Labor Final Rule Makes It Easier to Offer Perks to Workers    DOL

Final Rule: Regular Rate under the Fair Labor Standards Act   DOL Wage and Hour Division (WHD)

Regular Rate Under the Fair Labor Standards Act   Federal Register

Fact Sheet: Final Rule to Update the Regulations Governing the Regular Rage under the FLSA   DOL WHD

Highlights of the Final Rule of Regular Rate under the Fair Labor Standards Act  DOL WHD