<ul><li>The U.S. Department of Labor stated that employers cannot exclude reimbursement payments made to employees from their regular rate of pay if the employees do not actually incur those expenses.</li><li>Reimbursement payments must be reasonably approximate to the employee's actual incurred expenses.</li><li>Employers cannot use tool and expense reimbursement payments to artificially reduce employees' regular rates of pay and avoid overtime pay obligations.</li><li>A 2021 decision by the 9th U.S. Circuit Court of Appeals ruled that certain per diem payments must be included in employees' regular rate of pay.</li></ul>

Only incurred expenses may be excluded from overtime calculations, DOL says

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