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Department of Labor issues overtime pay rule

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The U.S. Department of Labor has issued a final rule updating the “regular rate of pay” standard used to calculate overtime pay under the Fair Labor Standards Act, HRDive reported. The rule, which will take effect Jan. 12, clarifies when certain employer benefits may be excluded when calculating overtime pay for a nonexempt employee, including bona fide meal periods, reimbursements, certain benefit plan contributions, state and local scheduling law payments and other factors. The rule also clarifies how employers may determine whether a bonus is discretionary or nondiscretionary. The final rule will likely result in employers taking a closer look at their benefits packages, according to an HR consultant.