On March 28, 2019, the U.S. Department of Labor (DOL) announced
a proposed rule that would update and clarify
regular rate requirements. Specifically, the proposed rule lists
perks and benefits, such as unused paid leave and reimbursed
expenses that employers can exclude when calculating an
employee's regular rate of pay. This article provides concise
answers to employers' frequently asked questions about the
proposed rule.
Is the proposed rule a positive development for employers?
The proposed rule appears to be a positive development for both
employers and employees. A primary benefit of the proposed rule is
that it updates and clarifies existing law as to what types of
compensation and benefits, including many new and innovative types
of compensation and benefits, are excludable from the regular rate
of pay for purposes of calculating overtime. This helps employers
comply with the Fair Labor Standards Act (FLSA) and allows
employers the freedom to be innovative
