Misclassification of employees under the FLSA is a common issue and can lead to costly litigation.
The regulation is effective through the end of 2020.
The clarifications came in the form of three opinion letters regarding the new regular rate regulations.
The Willis Towers Watson report noted that relatively few employers have cut salaries, though wage freezes and delayed raises are on the table.
Millions of jobs are at risk of layoffs due to COVID-19, and that figure grows as states and localities announce stricter public-health measures.