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1 Lab. L.J. 681 (1949-1950)
The Regular Rate of Pay Definition - Its Advantages

handle is hein.journals/labljo1 and id is 683 raw text is: Vol. 1, No. 9

The Regular Rate of Pay
Definition - Its Advantages

Administrator, Wage and Hour and Public
Contracts Divisions, Department of Labor

A LTHOUGH it is too early yet to report
on the basis of enforcement findings
since January 25, the effective date of the
amendments to the Fair Labor Standards
Act, I am confident that the clarification of
regular rate of pay problems provided for
by the amended Section 7 of the act will
have the effect of increased compliance with
the act's overtime provisions as well as
improved labor-management relations in the
general application of the act.
Personally, I regard the incorporation of
specific regular rate language in the act
itself as the culmination of a long-sought
effort. The eleven years of enforcement of
the act prior to the Fair Labor Standards
Amendments clearly demonstrated the need
Regular Rate of Pay Definition

for specific language on this vital subject,
and I so pointed out in my recommendations
to the Congress. The former bald require-
ment that an employee's overtime compen-
sation must be computed on the basis of at
least time and one half his regular rate
of pay, with the term regular rate not
defined in the act, each year resulted in in-
creased problems of interpretation, causing
unwitting violations by well-meaning em-
ployers, and often strained employer-employee
Of course, it may be that even the amended
Section 7 will not prove to be entirely ade-
quate, but it is immediately obvious that
its specific enumeration of seven types of
payments to employees as the only types


JUNE, 1950

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