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U.S. Department of Labor sealThe U.S. Department of Labor (DOL) issued a new Final Rule for the Regular Rate under the Fair Labor Standards Act. The Rule became effective on January 15, 2020, and it marks the first significant update to the regulations governing regular rate requirements under the FLSA in more than 50 years.

The new Rule clarifies which perks and benefits must be included in the regular rate of pay, as well as which perks and benefits an employer may provide without including them in the regular rate of pay. Regular rate requirements define what forms of payment employers include and exclude in the “time and one-half” calculation when determining workers’ overtime rates.

Follow link for the full text of the new regulation here or click the button below.

Regular Rate Under the Fair Labor Standards Act

In addition, here are some new resources including DOL fact sheets and a presentation that may assist in understanding these recent changes:

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