Which items are included in the regular rate of pay for overtime calculations?

• A. Reimbursed expenses
• B. Reimbursements
• C. Discretionary bonuses
• D. Base pay, commissions, and non-discretionary bonuses

Answer: (D)

The regular rate of pay for overtime is all compensation earned for work during the workweek, divided by hours actually worked, and it must include remuneration that the employee regularly receives, not things that aren’t pay.

Base pay, commissions, and non-discretionary bonuses fit this because they are earnings tied to the work performed and are guaranteed or predetermined (like commissions and bonuses that are promised by policy or contract). They reflect what the employee actually earns per hour and must be included when calculating overtime.

Discretionary bonuses aren’t included because they’re awarded at the employer’s sole discretion and aren’t guaranteed or predictable. Reimbursed expenses aren’t included either since they’re reimbursements of costs, not compensation for work.

So the items that are included in the regular rate for overtime calculations are base pay, commissions, and non-discretionary bonuses.