Flores v. City of San Gabriel altered the way employers consider opt-out payments to employees for not taking health insurance.1 The U.S. Court of Appeals for the Ninth Circuit determined that opt-out payments were required to be included in the regular rate of pay for purposes of calculating overtime. The Supreme Court denied the writ of certiorari in May 2017, allowing the decision to stand.

Originally published in the Bloomberg Tax Management Compensation Planning JournalTM - September 7, 2018.