Regular Rate Calculation Under Fair Labor Standards Act (“FLSA”) Changes

In December 2019, the DOL published its final rule regarding the FLSA’s regular rate requirement, effective January 15, 2020. While the rule should not drastically affect how employers calculate regular rate, it does exempt certain benefits (e.g., wellness programs and tuition reimbursements) from the regular rate calculation.

Business Takeaway: The DOL established guidelines that address some of the more frequently asked questions of the past few years. As so much time has passed since the last update to regular rate requirements (over 50 years ago), this is a welcome clarification that better reflects how companies operate today.

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