DOL Issues Final Rule Clarifying Overtime Rules for Retail and Service Industry Employers


The Department of Labor’s (DOL) Wage and Hour Division (WHD) issued a final rule, effective immediately, simplifying an overtime exemption for commission-based workers in the retail and service industries. The new rule is designed to provide greater clarity and flexibility for employers by withdrawing two provisions from the WHD regulations.

Click here to view the DOL press release on the final rule.

Also, the Department recently released a final rule that allows employers to pay bonuses or other incentive-based pay to salaried, nonexempt employees whose hours vary from week to week. The rule clarifies that payments in addition to the fixed salary are compatible with the use of the fluctuating workweek method under the Fair Labor Standards Act (FLSA).

“This final rule offers another example of how the U.S. Department of Labor is working to reduce unnecessary regulatory burdens in order to benefit American workers,” said U.S. Secretary of Labor Eugene Scalia. “Because of the clarity provided by this rule, employers will know they can pay workers’ bonuses in a broader range of circumstances.”

Click here for the summary.