Regular Rate of Pay Final Rule Issued by DOL

The Department of Labor (DOL) Final Rule updating the "regular rate" regulations became effective Jan. 15. This rule defines what forms of benefits and payments are included and excluded in the "time and one-half" overtime calculations. The "regular rate of pay" is the hourly building block for calculating overtime for non-exempt employees.

The updated regulations are intended to provide clarity on employer-provided benefits and payments to employees and to help prevent unknown overtime consequences and employer litigation. The Final Rule is also intended to promote compliance with the Fair Labor Standards Act and to positively impact workplace morale, compensation and employee retention.

For overtime worked, a non-exempt employee's overtime is paid at a rate of one and one-half times their regular rate of pay for all hours worked beyond 40 hours in a seven-day workweek. For certain fire protection or law enforcement personnel, including deputies and jailers, overtime pay is based on the county’s written and adopted 207(k) policy. A qualifying 207(k) policy must establish a “work period” between seven to 28 days, and set the maximum number of hours that can be worked in the defined work period to comply with the federal regulations.

If a county has an adopted compensatory time policy allowing for accruals of compensatory time in lieu of paying overtime, the regular rate of pay is calculated when compensatory time accruals are paid in cash.

For more information, see the Wage and Hour Division fact sheet.

For further information on these or other topics, TAC Risk Management Pool members can contact their TAC Human Resources Consultant. It is recommended that you additionally consult your county attorney or other legal counsel. Recommendations and information provided are based on current information in the field of human resources. This information is not intended to be, nor should they be construed as legal advice or legal guidance.