On June 12, AGC submitted comments to the U. S. Department of Labor’s (DOL) Wage and Hour Division (WHD) in response to its Notice of Proposed Rulemaking (NPRM) updating the regulations governing regular rate requirements for the first time in more than 50 years. Regular rate requirements define what forms of payment employers include and exclude in the "time and one-half" calculation when determining workers' overtime rates. The NPRM focused primarily on clarifying whether certain kinds of perks, benefits, or other miscellaneous items must be included in the regular rate. Because these regulations have not been updated in decades, the proposal’s intent is to better define the regular rate for today's workplace practices.
AGC’s supports the WHD’s efforts to address the regular rate regulations to provide clarity and better reflect the 21st-century workplace and believes that employees and employers alike are best served with a system that promotes maximum flexibility in structuring employee pay and benefits and clarity for employers when preparing total compensation packages. Specifically, in response to proposed revisions addressing “Reimbursable Expenses”, AGC educated the WHD on the prevalent industry practices around providing per diem allowances. AGC also advised that any changes in processes or requirements should be minimally disruptive to business operations and burdensome administratively.
AGC will continue to provide input to the DOL on the impact further changes might have on the construction industry and will notify members of any developments.
For more information, contact Claiborne Guy at claiborne.guy@agc.org or 703-837-5382.