The USDOL has continued to plow through its regulator
agenda. Today it released its proposed
guidance regarding the "regular rate" for purposes of
calculating FLSA overtime pay. The NPRM is intended to update and clarify the
FLSA’s requirements regarding the "regular rate"
and the (rarely used) alternative "basic rate".
Once published in the Federal Register, the public will have 60
days to submit comments. What do you need to know about this
breaking news?
But First, The Basic Principles
Overtime compensation for employees subject to the FLSA's
overtime provisions must be based upon the "regular rate"
of pay. The regular rate is normally determined by dividing
the total wages paid for a workweek by the total hours worked in
that workweek for which those wages are paid.
