Keeping up with the latest regulatory requirements is just one of the many things B2 can do for you so you don’t have to! Staying in compliance with regulatory changes is critical to keeping your practice or business on solid ground especially when those regulatory changes have to do with your payroll.
So, what’s new? The U.S. Department of Labor’s Wage and Hour Division has recently announced some updated compliance information for “regular rate requirements” regarding overtime. It is important that employers and employees understand their rights and that employers have the information they need to comply with these federal labor laws.
“Regular rate requirements” define what forms of payment employers include and/or exclude regarding the “time and one-half” calculation when/if determining employees’ overtime rates.
Under current rules, employers are discouraged from offering information that may be vague in defining and calculating an employees’ regular rate of pay and overtime. The new proposed rule focuses primarily on the clarification of whether certain kinds of perks, benefits or other miscellaneous items must be included in the “regular rate”. In other words, benefits that before could be calculated into an employee’s “regular” rate of pay – such as wellness programs, gym memberships, payment of unused sick leave, tuition or education debt – can no longer be used that way. The Department now proposes various clarifications to confirm that employers may exclude certain items from an employee’s regular rate of pay.
Clear as mud? Let us take the worry off your shoulders when it comes to these types of regulatory changes. Please contact me if you need to discuss this issue or make updates to your current Employee Handbook.
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