8/31/2023 0 Comments Shift differential meaning![]() ![]() The rule clarifies that employers may exclude the following perks from the regular-rate calculation: "Employees like these benefits, too," she said.Ĭalculating Overtime Pay in the United States She noted that only a few employee and union groups commented against the rule, and those comments addressed very specific points. This rule was relatively uncontroversial, said Tammy McCutchen, an attorney with Littler in Washington, D.C. But it includes more clarifying examples and provides additional insight into the DOL's views on specific benefits, she said. Tracks the proposed rule, noted Susan Harthill, an attorney with Morgan Lewis in Washington, D.C. The new rule is intended to reduce the risk of litigation and enable employers to provide benefits without fearing that "no good deed goes unpunished," Caminiti said. The new rule says that gym membership fees and other similar benefits don't have to be included. So instead of risking costly lawsuits, some employers were choosing not to offer competitive benefits.Įmployers were concerned that, for example, if they offered gym memberships to employees, they would have to add the cost to the regular-rate calculation, explained Kathleen Caminiti, an attorney with Fisher Phillips in Murray Hill, N.J., and New York City. ![]() Many employers weren't sure, however, if certain perks had to be included in the regular rate of pay. It excludes health insurance, paid leave, holiday and other discretionary bonuses, and certain gifts. Here's how the new law will impact employers.Ĭurrently, the regular rate includes hourly wages and salaries for nonexempt workers, most bonuses, shift differentials, on-call pay and commissions. This is the first time in more than 50 years that the DOL has updated the FLSA definition of the regular rate of pay. Department of Labor (DOL) announced a final rule that will take effect Jan. Employers now have more clarity and flexibility about which perks they should include in workers' "regular rate" of pay, which is used to calculate overtime premiums under the Fair Labor Standards Act (FLSA). ![]()
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