A. Unless there is an agreement or company policy to the contrary (e.g., a collective-bargaining agreement), an employer is not required to include vacation pay in the determination of an employee’s base rate for purposes of overtime calculation.he regular rate does not include certain payments excluded by the FLSA, which are inapplicable here. The regular rate is the average hourly rate, which is calculated by dividing the total pay for employment (except the statutory exclusions) in any workweek by the total number of hours actually worked.