Examples include, but are not limited to, coffee, snacks, coffee cups, t-shirts, raffle prizes, certain sign-on bonuses, and certain longevity bonuses. Sums paid as gifts, including payments in the nature of gifts made on holidays or on other special occasions, or as a reward for service may be excluded from the regular rate, provided the amounts of the gifts (or payments) are not measured by or dependent on hours worked, production, or efficiency. The following types of payments are excludable from the regular rate: Gifts and payments in the nature of gifts on special occasions Additional information regarding exclusions from the regular rate may be found in the regulations, 29 C.F.R. Unless specifically noted, payments that are excludable from the regular rate may not be credited towards overtime compensation due under the FLSA. Under the FLSA, the regular rate includes “all remuneration for employment paid to, or on behalf of, the employee.” The FLSA (29 USC § 207(e)) provides an exhaustive list of types of payments that can be excluded from the regular rate of pay when calculating overtime compensation. Total compensation in the workweek (except for statutory exclusions) ÷ Total hours worked in the workweek = Regular Rate for the workweek Exclusions from the regular rate The formula to compute the regular rate is: Fact Sheet #23 provides additional information regarding the calculation of overtime pay. If the regular rate is higher than the federal FLSA minimum wage, overtime compensation must be calculated using that higher regular rate. The regular rate may not be lower than the FLSA minimum wage or, where applicable, a higher state or local minimum wage. The regular rate of pay is based upon actual facts and cannot be circumvented by an agreement. Fact Sheet #23 provides additional information regarding overtime pay. This is calculated by dividing the total pay for employment (except for the statutory exclusions) in any workweek by the total number of hours actually worked to determine the regular rate. Earnings may be determined on a piece-rate, salary, commission, or some other basis, but in all such cases the overtime pay due must be computed on the basis of the average hourly rate derived from such earnings. The amount of overtime pay due to an employee is based on the employee’s regular rate of pay and the number of hours worked in a workweek. Fact Sheet #22 provides general information about determining hours worked. The FLSA requires that most employees in the United States be paid at least the federal minimum wage for all hours worked and overtime pay at not less than time and one-half the regular rate of pay for all hours worked over 40 hours in a workweek. This fact sheet provides general information regarding the regular rate of pay under the FLSA. Fact Sheet #56A: Overview of the Regular Rate of Pay Under the Fair Labor Standards Act (FLSA)
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |