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Effective January 15, 2020 - New DOL Rule on Calculating 'Regular Rate' of Pay

The FLSA definition of the regular rate of pay has been updated - the first update since 1969. The new rule clarifies employers may exclude up to eight perks from the regular rate calculation.

Based on these changes, the person or company managing your payroll needs to conduct a regular-rate audit. They need to gather a list of all the earnings codes currently being used for nonexempt employees and note each one they are including in the regular rate. Then they can compare that code with the new rule to see if changes are necessary.  Contact an E2E Expert if you need help.

Read and learn more from this SHRM article.