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ARTICLE · 15 JANUARY 2020

It's All About Those Rates (Part I): Basic Rate Of Pay

Seyfarth Synopsis: On January 15, 2020, the Department of Labor's Final Rule on regular and basic rates of pay will take effect. This series will explore the various issues implicated

United StatesEmployment and HR

Seyfarth Synopsis: On January 15, 2020, the Department of Labor's Final Rule on regular and basic rates of pay will take effect. This series will explore the various issues implicated by the Department's changes. Part I addresses the Department's changes to Part 548 of the regulations, Authorization of Established Basic Rates for Computing Overtime Pay.

In December, the U.S. Department of Labor's Wage & Hour Division announced its revisions to certain provisions of the FLSA regulations addressing regular and basic rates of pay. One of those changes increased the viability of the use of basic rates, by increasing the tolerance level related to additional overtime pay from $0.50 per week to 40% of the applicable minimum wage. Below we discuss basic rates and the impact of this revision.

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