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1 Lab. L.J. 681 (1949-1950)
The Regular Rate of Pay Definition - Its Advantages

handle is hein.journals/labljo1 and id is 683 raw text is: Vol. 1, No. 9 The Regular Rate of Pay Definition - Its Advantages By WM. R. McCOMB Administrator, Wage and Hour and Public Contracts Divisions, Department of Labor A LTHOUGH it is too early yet to report on the basis of enforcement findings since January 25, the effective date of the amendments to the Fair Labor Standards Act, I am confident that the clarification of regular rate of pay problems provided for by the amended Section 7 of the act will have the effect of increased compliance with the act's overtime provisions as well as improved labor-management relations in the general application of the act. Personally, I regard the incorporation of specific regular rate language in the act itself as the culmination of a long-sought effort. The eleven years of enforcement of the act prior to the Fair Labor Standards Amendments clearly demonstrated the need Regular Rate of Pay Definition for specific language on this vital subject, and I so pointed out in my recommendations to the Congress. The former bald require- ment that an employee's overtime compen- sation must be computed on the basis of at least time and one half his regular rate of pay, with the term regular rate not defined in the act, each year resulted in in- creased problems of interpretation, causing unwitting violations by well-meaning em- ployers, and often strained employer-employee relationships. Of course, it may be that even the amended Section 7 will not prove to be entirely ade- quate, but it is immediately obvious that its specific enumeration of seven types of payments to employees as the only types 681 Lq JUNE, 1950