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DOL/WHD RIN: 1235-AA24 Publication ID: Fall 2018 
Title: Regular and Basic Rates Under the Fair Labor Standards Act 

In this Notice of Proposed Rulemaking, the Department will propose to amend 29 CFR parts 548 and 778, to clarify, update, and define basic rate and regular rate requirements under sections 7(e) and 7(g)(3) of the Fair Labor Standards Act.

Agency: Department of Labor(DOL)  Priority: Other Significant 
RIN Status: Previously published in the Unified Agenda Agenda Stage of Rulemaking: Proposed Rule Stage 
Major: Undetermined  Unfunded Mandates: Undetermined 
EO 13771 Designation: Deregulatory 
CFR Citation: 29 CFR 548    29 CFR 778   
Legal Authority: 29 U.S.C. 201 et seq.   
Legal Deadline:  None

Statement of Need:

The majority of 29 CFR part 778 was promulgated more than sixty years ago.  The Department believes that changes in the 21st century workplace are not reflected in its current regulatory framework.  While the Department has periodically updated various sections of part 778 over the past several decades, they have not addressed the changes in compensation practices and relevant laws.  The Department is interested in ensuring that its regulations provide appropriate guidance to employers offering these more modern forms of compensation and benefits regarding their inclusion in, or exclusion from, the regular rate.  Clarifying this issue will ensure that employers have the flexibility to provide such compensation and benefits to their employees, thereby providing employers more flexibility in the compensation and benefits packages they offer to employees.  Similarly, the Department believes that the proposed changes will facilitate compliance with the FLSA and lessen litigation regarding the regular rate.  Additionally, the Department has not updated part 548 since 1967.


Summary of the Legal Basis:

Part 778 constitutes the official interpretation of the Department with respect to the meaning and application of the maximum hours and overtime compensation requirements contained in section 7 of the FLSA, 29 U.S.C. 207, including calculation of the regular rate.  Additionally, part 548 sets out the requirements for authorized basic rates under section 7(g)(3) of the FLSA, 29 U.S.C. 207(g).


Alternatives will be developed in considering any proposed revisions to the current regulations. The public will be invited to provide comments on any proposed revisions and possible alternatives.

Anticipated Costs and Benefits:

The Department will prepare estimates of the anticipated costs and benefits associated with the proposed rule.


This action does not affect public health, safety, or the environment.

Action Date FR Cite
NPRM  12/00/2018 
Regulatory Flexibility Analysis Required: Undetermined  Government Levels Affected: Federal, Local, State, Tribal 
Small Entities Affected: Businesses, Governmental Jurisdictions, Organizations  Federalism: No 
Included in the Regulatory Plan: Yes 
RIN Data Printed in the FR: No 
Agency Contact:
Melissa Smith
Director, Regulations, Legislation and Interpretations
Department of Labor
Wage and Hour Division
200 Constitution Avenue NW., Room S-3502,
Washington, DC 20210
Phone:202 693-0406
Fax:202 693-1387