Final answer:
Vacation pay is not included in the regular rate for the calculation of overtime pay.
Step-by-step explanation:
In the calculation of overtime pay, vacation pay is not included in the regular rate. The regular rate is the hourly rate that is used as a basis for calculating overtime pay. It includes all forms of compensation such as wages, salary, and most bonuses, but vacation pay is not considered part of the regular rate.
For example, if an employee earns $20 per hour and works 8 hours of overtime, their overtime pay rate would be $30 per hour (1.5 times the regular rate). However, if the employee also receives $100 in vacation pay, the overtime pay rate would still be calculated based on the regular rate of $20 per hour, not including the vacation pay.
Therefore, the correct answer to the question is D. Vacation pay is not included in the regular rate for the calculation of overtime pay.