The U.S. Department of Labor (DOL) is making significant changes to the regulations covering the regular rate of pay under the Fair Labor Standards Act (FLSA) for the first time in more than 50 years. The FLSA entitles most covered, nonexempt employees to receive overtime pay of at least one and one-half times the employee’s regular rate of pay for all hours worked over 40 in a workweek.

Definition of “Regular Rate”

Under the FLSA, “regular rate” includes all remuneration for employment paid to the employee, but excludes the following eight categories of payments:

  • Gifts and payments for special occasions