Compliance Stuff

  On January 5, 2026, the U.S. Department of Labor’s Wage and Hour Division issued   Opinion Letter FLSA2026-2 , addressing whether certain “Safety, Job Duties, and Performance” bonuses may be excluded from an employee’s regular rate of pay when calculating an employee’s overtime premium under Section 7(e) of the Fair Labor Standards Act (FLSA). The short answer: they cannot, at least under the circumstances analyzed in the opinion letter. The opinion letter involves a pay plan for waste-management drivers that included a base hourly rate plus incentive bonuses tied to safety, job performance, and completion of duties. These bonuses were formula-driven and could add up to $9.50 per hour when specific criteria were met. Once those criteria were satisfied, the amount of the bonus was quantifiable under the plan and automatically earned by the employee.  The DOL confirms in this opinion letter that Section 7(e)(3) of the FLSA allows exclusion only of truly discretionary bonu...

On September 30, 2025, the U.S. Department of Labor (“DOL”) Wage and Hour Division issued a new opinion letter clarifying how employers should calculate the hourly equivalent of an employee’s available leave under the Family and Medical Leave Act (“FMLA”). The opinion also addresses how FMLA applies to employees whose schedules include both mandatory and voluntary overtime. While the guidance largely reaffirms existing principles, it provides clarification for employers that manage nontraditional or fluctuating work schedules. Background on the FMLA The FMLA entitles eligible employees of covered employers to take up to 12 workweeks of unpaid, job-protected leave in a 12-month period for qualifying family and medical reasons – such as the employee’s serious health condition, the birth or adoption of a child, or the need to care for a family member with a serious health condition . During FMLA leave, group health insurance coverage must continue under the same terms and conditions as i...

The Department of Labor’s recent opinion letter provides important reminders to employers about the proper method for calculating an employee’s available leave under the Family and Medical Leave Act, especially for employees whose schedules include mandatory overtime. You can read our  full analysis here .   Source(s): Breslin, L. P. (2025, October 17).  DOL Opinion Letter Addresses How to Properly Calculate FMLA When Overtime is Involved . Disability, Leave & Health Management Blog. https://www.disabilityleavelaw.com/2025/10/articles/dol/dol-opinion-letter-addresses-how-to-properly-calculate-fmla-when-overtime-is-involved/?utm_source=elinfonet ‌