Regular Rate of Pay

Editor's Note: It's not always just straight hourly wages.

Michael CardmanOverview: The Fair Labor Standards Act (FLSA)'s overtime laws require employers to pay employees one and one-half times their regular rate of pay for all hours beyond 40 in a workweek.

But just what exactly is the regular rate of pay? If an employee is paid an hourly wage and nothing else, then the regular rate of pay is simply the hourly wage.

But other forms of payment also must be included in the regular rate of pay, including the cost of meals and lodging, commissions and certain bonuses. Understanding what must be included, and what may be excluded, from the regular rate is crucial to ensuring employees are paid as much overtime as they are due.

Trends: As the economy rebounds, employers that begin paying out more bonuses and other forms of compensation will need to pay careful attention to the regular rate of pay.

Author: Michael Cardman, Legal Editor

Latest items in Regular Rate of Pay

  • Overtime: Washington

    Type:
    Employment Law Manual

    Updated to reflect forthcoming quasi-overtime requirements under the Seattle Secure Scheduling Ordinance

  • Overtime: California

    Type:
    Employment Law Manual

    Updated to reflect new laws that affect separate overtime requirements for agricultural employees and domestic personal attendants.

  • Cash in Lieu of Benefits Must Be Included in Overtime Calculations, 9th Cir. Rules

    Date:
    July 12, 2016
    Type:
    News

    In Flores v. City of San Gabriel, the 9th Circuit Court of Appeals held that payments of cash in lieu of benefits must be included in the regular rate when calculating how much overtime employees are owed under the Fair Labor Standards Act (FLSA).

  • Overtime: Maryland

    Type:
    Employment Law Manual

    In-depth review of the spectrum of Maryland employment law requirements HR must follow with respect to overtime.

  • Overtime: West Virginia

    Type:
    Employment Law Manual

    In-depth review of the spectrum of West Virginia employment law requirements HR must follow with respect to overtime.

  • Overtime: Michigan

    Type:
    Employment Law Manual

    In-depth review of the spectrum of Michigan employment law requirements HR must follow in respect to overtime.

  • Overtime: Alaska

    Type:
    Employment Law Manual

    In-depth review of the spectrum of Alaska employment law requirements HR must follow with respect to overtime.

  • Overtime: New Mexico

    Type:
    Employment Law Manual

    In-depth review of the spectrum of New Mexico employment law requirements HR must follow with respect to overtime.

  • Overtime: Oregon

    Type:
    Employment Law Manual

    In-depth review of the spectrum of Oregon employment law requirements HR must follow with respect to overtime.

  • Overtime: Illinois

    Type:
    Employment Law Manual

    In-depth review of the spectrum of Illinois employment law requirements HR must follow with respect to overtime.