WAGE/HOUR OVERTIME RULE DEVELOPMENTS

In a Department of Labor regulatory release of May 9, 2018, the Wage/Hour Division now estimates a January 2019 release of its important salary level rules to determine the number of workers eligible for overtime pay.  This rule would replace the Obama Administration’s version of the rule which would have doubled the salary level below which employees qualify for time and a half overtime wages.

An interesting new development in the May 9, 2018 release is a separate initiative in which wage/hour plans to clarify and update its "regular rate" requirements, dealing with types of compensation that must be considered in determining overtime pay.  This deals with whether various payments to employees must be considered in calculating overtime pay, including things like bonuses, commissions, prizes, and awards.  It is a little unclear exactly how far the regulation might go, as it could include modifying the salaried non-exempt standard of using fluctuating work week overtime calculations.