There are three steps employers must follow to comply with the Fair Labor Standards Act and overtime regulations: calculate the hours worked, which requires an understanding of what is deemed working time by the FLSA; calculate the regular rate of pay, which goes beyond the employee’s hourly rate to include bonuses and other payments; and calculate the overtime rate, which is based on the previous two calculations. Employers cannot accurately calculate the regular rate of pay and then the overtime rate without first capturing all work time, including off-site, at home, and travel, as well as hours worked outside the regular work day, and considering such things as on-call time and on-call policies, training time, and meals and rest periods.
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