For many senior living operators, offering perks such as gym memberships or discretionary bonuses can get tricky. That’s because confusion often abounds about possible overtime provisions that might get triggered.
A final Labor Department regulation released Thursday promises new clarity.
The regulation states that employers can offer the following without risk of additional overtime liability:
- The cost of providing certain parking benefits, wellness programs, onsite specialist treatment, gym access and fitness classes, employee discounts on retail goods and services, certain tuition benefits (whether paid to an employee, an education provider or a student-loan program) and adoption assistance
- Payments for unused paid leave, including paid sick leave or paid time off.
- Payments of certain penalties required under state and local scheduling laws.
- Reimbursed expenses including cell phone plans, credentialing exam fees, organization membership dues, and travel, even if not incurred “solely” for the employer’s benefit; and clarifies that reimbursements that do not exceed the maximum travel reimbursement under the Federal Travel Regulation System or the optional IRS substantiation amounts for travel expenses are per se “reasonable payments.”
- Certain sign-on bonuses and certain longevity bonuses.
- The cost of office coffee and snacks to employees as gifts.
- Discretionary bonuses, by clarifying that the label given a bonus does not determine whether it is discretionary and providing additional examples.
- Contributions to benefit plans for accident, unemployment, legal services or other events that could cause future financial hardship or expense.
The rule is scheduled to take effect Jan. 20.
The regulation is part of a larger White House plan to reduce regulations on employers.
