Fixed payments made on other than an hourly basis to non-exempt (i.e., overtime eligible) workers often must be included in the regular rate of pay for purposes of calculating overtime. One type of payment that may be excluded from the regular rate calculation is payment for “reasonable payments for travel expenses, or other
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EDNY Judge Rules Suggested Gratuity Did Not Factor Into Overtime Calculation and Upholds Validity of Auto-Deduct For Meal Periods
By Noel P. Tripp on
Posted in Regular Rate, Tips and Tipped Employees
As discussed repeatedly in these pages and elsewhere, employers have faced innumerable lawsuits regarding their alleged failure to distribute amounts purported to be gratuities to service staff in their entirety. However, even distributing tip money dollar-for-dollar to service providers is not a panacea against wage claims, as highlighted in a new opinion issuing from the…
The Pitfalls Of Excluding Payments from the Calculation Of The Regular Rate Of Pay
By Noel P. Tripp on
Posted in Regular Rate
In general, when calculating the regular rate of pay for purposes of determining overtime under the FLSA, all remuneration must be included. This rule is subject to certain limited exceptions for, inter alia, discretionary bonuses and reimbursement of legitimate expenses. But, if an employer decides to provide an hourly “per diem” and classify it…