ECA News


Date ArticleType
5/11/2018 Industry News
Calculating OT Plan on USDOL Agenda

The U.S. Labor Department intends to revise the law governing
time-and-a-half overtime calculations.

The DOL's Wage and Hour Division (WHD) will "clarify, update, and define regular rate requirements," the administration announced earlier this week. The regular rate of pay refers to an employee's typical hourly rate, which is multiplied by 1.5 to determine overtime earnings for hours exceeding 40 in a workweek.

The previously undisclosed initiative is separate from an effort to modify the Obama administration's rule to expand overtime access.

The ambiguity in the short explanation provided by the department opens up multiple possibilities for how wage-hour rules could be changed when the proposal is released. Options could include modifying the Fair Labor Standards Act's fluctuating workweek overtime calculations or amending how bonuses and commissions are treated when determining time-and-a-half wages.

The DOL anticipates releasing this regular rate of pay proposed rule in September.

Elsewhere in overtime rulemaking, the WHD now estimates a January 2019 release of its second stab in recent years at a high-priority rule designed to expand the number of workers eligible for overtime pay. This proposed rule marks the administration's attempt to replace the Obama DOL's more ambitious version of the rule, which would have doubled the salary level below which employees qualify for time-and-a-half overtime wages. --BNA