Daily Labor Report®

Rule to Exclude Employee Perks from Overtime Pay Nears Release

Sept. 9, 2019, 1:06 PM

A regulation permitting employers to offer a range of employee benefits, such as gym discounts and tuition reimbursements, without affecting workers’ overtime pay is now awaiting final White House clearance before public release.

The Labor Department’s Wage and Hour Division moved the draft final rule to the White House Office of Information and Regulatory Affairs Sept. 8, an online OIRA posting shows.

The rule will update and clarify the regular rate, which refers to the typical hourly rate of pay that’s multiplied by 1.5 to calculate the overtime premium for hours beyond 40 in a work week. Under strong backing...

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