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ABA Issues Staff Analysis on DOL ‘Regular Rate of Pay’ Proposal

Monday, April 22, 2019   (0 Comments)
Posted by: Amanda Averch
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ABA has published a staff analysis on the Department of Labor’s proposed rule that would clarify which types of compensation must be included in determining an employee’s “regular rate” of pay. Comments on the proposal are due by May 28, 2019.

 

The calculation of an employee’s regular rate of pay is important because, under the Fair Labor Standards Act, banks and other employers must pay an employee 1.5 times the employee’s regular rate of pay for any hours in excess of 40 hours that the employee works in a workweek, unless that employee is exempt from overtime requirements. An employee’s regular rate of pay will frequently differ from the employee’s hourly rate of pay because the regular rate includes certain “perks” provided to the employee and other forms of compensation.

 

DOL’s proposed rule clarifies that sick leave; accident, unemployment, and legal services benefits; wellness programs; gym memberships; retail discounts; and tuition programs are excluded from the employee’s regular rate of pay. The proposal also provides examples of discretionary bonuses that are excluded from the regular rate. Read the staff anaylsisRead DOL’s proposed rule.

 

ABA is inviting interested bankers to participate in a conference call to provide feedback on the proposed rule. For more information, or to provide feedback, contact ABA's Jonathan Thessin

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