FLSA 29 U.S.C. § 207(e)
Authoritative Statutory Source
FLSA Regular Rate of Pay
Hourly wage rate including non-discretionary bonuses and shift premiums used for 1.5× overtime.
Detailed Definition & Statutory Context
FLSA Regular Rate of Pay is governed by FLSA 29 U.S.C. § 207(e) standards across corporate payroll administration, statutory tax withholding, and general ledger labor accounting. Rigorous compliance with FLSA Regular Rate of Pay prevents IRS Form 941 deposit penalties and FLSA wage-and-hour litigation.
Statutory Formula & Equation
Regular Rate = ( Total Non-Overtime Compensation + Non-Discretionary Bonuses ) ÷ Hours Worked
General Ledger / Payroll Journal Entry Standard
Debit: Gross Payroll Expense / Employer Tax Expense
Credit: FICA Taxes Payable / Federal Income Tax Payable / Net Pay Cash
Credit: FICA Taxes Payable / Federal Income Tax Payable / Net Pay Cash
Common Operational Pitfalls
- Excluding non-discretionary bonuses from FLSA overtime regular-rate calculations.
- Failing to cap Social Security tax withholding once employee earnings exceed the $168,600 wage base.
- Misclassifying non-exempt hourly employees as exempt salaried workers.