New Rule Boosts Worker Perks Without Impacting Overtime (1)

The Labor Department has finalized a regulation that seeks to expand companies’ ability to offer perks to workers, such as gym discounts and tuition reimbursements, without having to factor their value into overtime wages.

A final regulation, issued Dec. 12, updates employers’ “regular rate” of pay calculation requirements. That refers to the typical hourly rate, which is then multiplied by 1.5 to calculate the overtime premium for hours beyond 40 in a workweek.

The rule, a priority for the White House and the business lobby, clarifies the types of benefits companies can provide without including their monetary value in ...