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ARTICLE · 03 APRIL 2019

Regular Rate Proposal Issues (Beltway Buzz, March 29, 2019)

Ogletree, Deakins, Nash, Smoak & Stewart
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On March 29, 2019, the DoL's Wage and Hour Division published a notice of proposed rulemaking to clarify what forms of payments must be included (or excluded) for purposes of calculating workers' overtime pay.

United StatesEmployment and HR

The Beltway Buzz is a weekly update summarizing labor and employment news from inside the Beltway and clarifying how what's happening in Washington, D.C. could impact your business.


Regular Rate Proposal Issues. On March 29, 2019, the U.S. Department of Labor's (DOL) Wage and Hour Division (WHD) published a notice of proposed rulemaking (NPRM) to clarify what forms of payments must be included (or excluded) for purposes of calculating workers' overtime pay. According to the WHD, the clarification is necessary because the current outdated regulations discourage employers from "offering more perks to their employees as it may be unclear whether" to include those perks when calculating an employee's regular rate of pay for overtime purposes. To help alleviate this confusion, the DOL proposes to expressly exclude certain costs—such as payments for unused paid leave—from the regular rate calculation. Comments are due on May 28, 2019—just one week after comments are due

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