{"id":246,"date":"2008-12-09T11:11:10","date_gmt":"2008-12-09T15:11:10","guid":{"rendered":"https:\/\/old.visionpayroll.com\/kb\/?p=246"},"modified":"2008-12-09T11:11:10","modified_gmt":"2008-12-09T15:11:10","slug":"us-department-of-labor-issues-opinion-letter-on-overtime-pay-calculation","status":"publish","type":"post","link":"https:\/\/old.visionpayroll.com\/kb\/2008\/12\/us-department-of-labor-issues-opinion-letter-on-overtime-pay-calculation\/","title":{"rendered":"US Department of Labor Issues Opinion Letter on Overtime Pay Calculation"},"content":{"rendered":"
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The US Department of Labor (DOL) recently issued non-Administrator signed Opinion Letter FLSA2008-12NA<\/a>. Although Opinion Letters only apply to the exact set of facts and circumstances presented in each case, they are a valuable aid in understanding current interpretations of the Fair Labor Standards Act (FLSA). Unlike signed Opinion Letters, unsigned Opinion Letters do not \u201cprovide a potential good faith reliance defense for violations of the FLSA.\u201d<\/span><\/p>\n

This Opinion Letter discusses whether a company that employs dump truck drivers uses an overtime calculation method in compliance with the FLSA. The company pays each dump\u00a0truck driver a commission equal to 27% of the gross revenue that the company receives for the materials delivered by that driver. The company pays overtime based on one-half of the commission divided by the hours worked times the number of hours worked in excess of forty in that week.<\/span><\/p>\n

For example, assume a driver delivers material that produces $5000 of gross revenue for the company and works fifty-four hours in that workweek. The driver would be entitled to commission compensation of $1350 ($5000 X 27%). This would work out to a regular rate of pay of $25 per hour ($1350 \u00f7 54 hours). The driver would also be entitled, therefore, to $175 of overtime compensation ($25 per hour X 14 hours (hours worked in excess of forty) \u00f7 2 (overtime premium rate)).<\/span><\/p>\n

The DOL confirmed that this method of computing overtime pay was proper under the FLSA.<\/span><\/p>\n

State laws may provide rules that are more beneficial to the employee and must be followed. Contact Vision Payroll<\/span><\/a> if you have questions about this Opinion Letter.<\/span><\/p>\n

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The US Department of Labor (DOL) recently issued non-Administrator signed Opinion Letter FLSA2008-12NA. Although Opinion Letters only apply to the exact set of facts and circumstances presented in each case, they are a valuable aid in understanding current interpretations of the Fair Labor Standards Act (FLSA). Unlike signed Opinion Letters, unsigned Opinion Letters do not […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[4],"tags":[82,47,611,158,151,45,89],"_links":{"self":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/246"}],"collection":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/comments?post=246"}],"version-history":[{"count":0,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/246\/revisions"}],"wp:attachment":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/media?parent=246"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/categories?post=246"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/tags?post=246"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}