The regular rate of pay under the Fair Labor Standards Act is the hourly rate used to calculate overtime pay. It includes base hourly wages plus most other compensation (non-discretionary bonuses, shift differentials, commissions, hazard pay) divided by total hours worked in the workweek. Overtime is then paid at 1.5 times the regular rate for hours over 40. Discretionary bonuses, gifts, and certain benefits are excluded from the regular rate calculation under specific FLSA rules.
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