U.S. Department of Labor Finalizes New Regular Rate Rule

On December 12, 2019, the U.S. Department of Labor (DOL) issued its new Final Rule on the “regular rate of pay” under the Fair Labor Standards Act (FLSA). The Final Rule will be published today, December 16, 2019, and will have an effective date of January 15, 2020. As a reminder, the regular rate of pay is used to calculate the proper overtime rate to be paid to employees who work more than 40 hours in a workweek. It includes not only an employee’s hourly rate of pay, but also many extra forms of compensation, such as shift differentials, incentive payments and non-discretionary bonuses. More.


Practice Area:

Labor & Employment