California Court Rules County Properly Excluded Insurance Premiums from Overtime Pay

A federal district court granted partial summary judgment to the County of San Diego in a Fair Labor Standards Act case.

Published on Mar. 4, 2026

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A California federal district court ruled that the County of San Diego properly excluded an employee's insurance premium contributions from overtime calculations under the Fair Labor Standards Act (FLSA). The court found that the employee's Group Life and Accidental Death and Dismemberment Insurance Policy qualified as a 'bona fide plan' under the FLSA, allowing the county to exclude those premiums from the employee's regular rate of pay when calculating overtime pay.

Why it matters

This ruling provides clarity on how employers can properly calculate overtime pay under the FLSA, specifically regarding the exclusion of certain employee benefit contributions from the regular rate of pay. The decision could impact how other public and private employers structure their employee benefits and overtime pay policies.

The details

The case was brought by a non-exempt hourly employee who alleged the county improperly excluded her insurance premium contributions from her regular rate of pay when calculating overtime. The court granted partial summary judgment to the county, finding that the employee's Group Life and Accidental Death and Dismemberment Insurance Policy qualified as a 'bona fide plan' under the FLSA, allowing the county to exclude those premiums from the regular rate of pay.

  • The case was decided on March 4, 2026.

The players

County of San Diego

The defendant in the case, a local government entity in California.

Non-exempt hourly employee

The plaintiff in the case, who alleged the county improperly excluded her insurance premium contributions from her regular rate of pay when calculating overtime.

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The takeaway

This case highlights the importance for employers to carefully structure their employee benefit plans and overtime pay policies to ensure compliance with the FLSA, as the exclusion of certain benefit contributions can impact how overtime is calculated.