A home care provider entitled to the protections of the Fair Labor Standards Act (FLSA) can be paid an hourly rate, daily rate, shift rate, monthly stipend, or on a salary basis as long as the employee’s overall earnings for the workweek result in a “regular rate” of pay for all hours worked that is at least the current Federal minimum wage. The “regular rate” under the FLSA is an hourly rate of pay determined by dividing the employee’s total compensation in the workweek by the total number of hours actually worked in that workweek. For example, a worker who earns $50.00 per day and works 5 hours on Day 1 and 6 hours on Day 2 (and no other days that week) has been paid in compliance with the FLSA’s $7.25 minimum wage requirement because the employee’s “regular rate” of pay is $9.09 per hour ($100 of pay divided by 11 hours of work). An employee’s “regular rate” of pay is used to determine any additional overtime compensation owed if an employee works more than 40 hours in a workweek.
October 2018
Tags: FLSA Compliance
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