Bonuses Fair Labor Standards Act

News & Analysis as of

The Wait Is Over – The New Overtime Rules Are Here: The Reconfiguration of Your Compensation System Is Just Beginning

The good news is the long awaited rule on overtime has arrived – finally. The proposed rule goes into effect on December 1, 2016. The quick summary is the changes aren’t quite as bad as everyone feared. The long summary is...more

California Employment Law Notes - March 2016

Nuclear Plant Maintenance Manager's Whistleblower Claim Was Properly Dismissed - Sanders v. Energy Northwest, 2016 WL 560809 (9th Cir. 2016) - David W. Sanders, a maintenance manager for Energy Northwest (a...more

Federal Law Applies in Calculating Overtime on Flat Sum Bonuses

Paying employees a bonus may trigger the obligation to pay retroactive overtime. The good news is that Alvarado v. Dart Container Corporation of California clarifies that it is lawful for California employers to use the...more

California Court Approves FLSA Formula For Flat Bonuses

The California Court of Appeal provided employers with a small New Year’s gift for 2016: on January 14, in Alvarado v. Dart Container Corporation of California, it affirmed that an employer’s formula for calculating overtime,...more

What Is A "Percentage Bonus"?

Overtime wages for employees subject to the federal Fair Labor Standards Act's overtime requirement must be based upon the "regular rate" of pay. This is an hourly rate that is normally determined by dividing the total wages...more

Financial Services Industry: Be Aware of Proposed White Collar Overtime Regulations

The financial services area received a defeat earlier this year when the United States Supreme Court in March upheld the Department of Labor's (DOL) Administrative Interpretation concluding that mortgage loan officers do not...more

Should Employers Be Allowed to Count Nondiscretionary Bonuses Toward the FLSA’s Minimum Salary Threshold? The DOL Wants Your...

As we reported last week in “A Call to Action: The Comment Period on the new Proposed Overtime Regulations Begins,” employers have a limited window of opportunity to submit comments in response to the proposed revisions to...more

“White Collar” Exemptions Defined and Delimited

On June 30, the Wage and Hour Division of the U.S. Department of Labor (DOL) issued its much-anticipated Notice of Proposed Rulemaking (NPRM) on “Defining and Delimiting the Exemptions for Executive, Administrative,...more

Determining When a Commission is "Earned" When Calculating the Regular Rate

In our last post, we discussed the calculation of the “regular rate” and some of the complexities of determining what constitutes “remuneration” under the Fair Labor Standards Act (FLSA). Commission is one of the additional...more

Some Thoughts on Employee Appreciation Day, including a Potential Wage and Hour Pitfall

“And you’re wondering . . . am I appreciated . . . I’m not really appreciated, should I play like I’m appreciated, but I’m not that appreciated . . .but I think my employer might appreciate me . . . but do I want to be...more

Ignoring the Bonus True-Up: How a Seemingly Small Oversight Can Lead to Complex Litigation

As many employers recognize, a seemingly small oversight in administering employee payroll can have significant consequences, including unexpected complex litigation. One such oversight is failing to consider the wage-hour...more

How and When Bonuses are Awarded Impact Non-Exempt Employees' Overtime Compensation

Does your company pay employees holiday or year-end bonuses? Have you ever considered the impact these bonus payments might have on your employees' overtime premiums? If not, you could be violating FLSA rules....more

Quirky Question #214, Quirky Question: Christmas Bonus as Part of Regular Rate of Pay When Calculating Overtime Pay

Each year, we provide our employees with a Christmas bonus of varying amounts. We’ve always done this because we want to reward our employees for a hard year of work and also spread a bit of holiday cheer. We were recently...more

Fluctuating-Workweek Ruling Might Be Reviewed

Last month's "Fuzzy Thinking" post mentioned Sisson v. RadioShack Corp., in which a lower federal court in Ohio deferred to the U.S. Labor Department's 2011 allegation that paying performance bonuses is purportedly...more

Fluctuating Workweek and Bonus Payments Are Incompatible under the FLSA Per a Recent Ohio Federal Court Ruling

The “fluctuating workweek” wage payment method is allowed under the Fair Labor Standards Act (FLSA) when (1) a non-exempt employee’s hours of work fluctuate from week to week, (2) the employer and employee agree to use this...more

Don't Forget To Include Non-Discretionary Bonuses In Overtime

As 2012 comes to a close, we inevitably receive questions related to year-end bonuses. Last year, I posted about whether employers were required to pay a pro-rata bonus to those employees who left their employment before the...more

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