What is included in an employee's "regular" pay rate for purposes of calculating their overtime pay rate?

Determining an employee's "regular" hourly pay rate is important for determinining their overtime pay rate because the overtime rate must be at least one and one-half times their regular rate.

"The regular rate by its very nature must reflect all payments which hte parties have agreed shall be received during the workweek exclusive of overtime payments," said the United States Supreme Court in Bay Ridge Operating Company v. Aaron, 334 U.S. 446, 461 (1948).    The determination of an employee's "regular" hourly rate is not limited by how the employer characterizes payments made to an employee such as bonuses or per diems as Robert Abell has discussed on his Kentucky Employment Law Blog, "Per Diem Payments Ruled Part of Employee's Regular Wage Rate for Purposes of Calculating Overtime Rate."

If you have questions about overtime compensation that may be owed you, contact Lexington, Kentucky overtime attorney Robert Abell at 859-254-7076.