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Bonuses Non-Exempt Employees

Fisher Phillips

Reclassifying Employees to Non-Exempt Status? Consider a “Percentage Bonus” to Avoid Costly Overtime Pay Mistakes

Fisher Phillips on

Many employers are planning to reclassify employees to non-exempt status now that the Labor Department is significantly raising the salary threshold for employees to be exempt from overtime pay. You likely know that...more

Fox Rothschild LLP

Employers Must Beware Of Year-End Wage Hour Issues/Landmines!

Fox Rothschild LLP on

I read an interesting post by Sara Zorich of Amundsen Davis concerning the year-end wage hour issues that employers must deal with, and I agree with the concepts set forth in that article. There are a number of implications...more

Amundsen Davis LLC

Time to Check Your Year-End Wage and Hour Compliance

Amundsen Davis LLC on

As we wind down 2023, your company may be sharing with its employees either through business closing periods or end-of-the-year bonuses. Employers must be cognizant that these generous gestures may carry compliance...more

Fox Rothschild LLP

No Overtime on Overtime – a Qualified Win for Employers

Fox Rothschild LLP on

Employers got a rare win in a regular rate case earlier this month. In Lemm v. Ecolab, Inc., the Second District cemented California’s adoption of the percentage of total earnings bonus exemption to the regular rate for...more

Parker Poe Adams & Bernstein LLP

Overtime Rules Require Addition of Incentive Compensation to Regular Rate

​​​​​​​Over the years, we have periodically published EmployNews articles on the impact of bonuses or other incentive compensation on the regular rate used to calculate overtime under the Fair Labor Standards Act (FLSA)....more

Epstein Becker & Green

Fifth Circuit Concludes Employees Must Prove That a Bonus Payment Should Be Included in FLSA Regular Rate

Epstein Becker & Green on

In a case of first impression for the Fifth Circuit Court of Appeals, a Fifth Circuit panel has ruled that it is the employee, not the employer, who has the burden to establish that bonus payments are non-discretionary and,...more

Parker Poe Adams & Bernstein LLP

Employee Bears Burden of Showing Bonus Was Non-Discretionary in Overtime Claim

One of the most frequently violated provisions of the Fair Labor Standards Act involves the effect of bonuses or other incentive compensation on the rate used to calculate overtime. For non-exempt employees, the employer must...more

Sherman & Howard L.L.C.

No New News On Nondiscretionary Bonuses

On January 7, 2020, the U.S. Department of Labor (“DOL”) issued a new Opinion Letter on “nondiscretionary” bonuses. When a bonus is offered to employees “to induce them to remain” with the company, the DOL considers the...more

Harris Beach PLLC

U.S. Department of Labor Updates Rules Governing Regular Rate Calculation to Provide More Guidance for Employers

Harris Beach PLLC on

Under the Fair Labor Standards Act, non-exempt employees must receive one and one half times their regular rate of pay for all hours worked over forty in a work week. The “regular rate” is generally calculated by dividing...more

Smith Anderson

Federal Department of Labor Modernizes Regular Rate Regulations

Smith Anderson on

The federal Department of Labor (DOL) has announced the issuance of a final rule that, according to the DOL, will “encourage employers to provide additional and innovative benefits to workers without fear of costly...more

Jaburg Wilk

DOL Overtime Rules

Jaburg Wilk on

In September, the U.S. Department of Labor issued a long-awaited final rule updating the compensation requirements for the FLSA’s executive, administrative, and professional exemptions. The 2019 Final Rule is effective...more

Bradley Arant Boult Cummings LLP

Six FLSA Resolutions for the New Year

With the minimum guaranteed salary requirement for the most common Fair Labor Standards Act exemptions being raised from $23,660 to $35,568, effective January 1, 2020, under a final rule issued by the U.S. Department of Labor...more

Bracewell LLP

Department of Labor Issues Final Rule on Calculating the Regular Rate of Pay

Bracewell LLP on

December 12, the Department of Labor filed a Final Rule clarifying the types of benefits that must be included in the “regular rate of pay.” Under the Fair Labor Standards Act (FLSA), employers must pay workers at least the...more

Fisher Phillips

Labor Department Offers Employers Some FLSA Clarity Through New “Regular Rate” Interpretation

Fisher Phillips on

For the first time in over 60 years, the U.S. Department of Labor today issued a final rule updating its interpretative guidance with respect to permissible exclusions from the “regular rate.” According to the USDOL, the...more

Verrill

Certain Bonuses Must Be Included When Calculating Overtime Pay

Verrill on

The federal Fair Labor Standards Act (FLSA) generally requires that nonexempt employees who work more than 40 hours in a workweek be paid 1.5 times their “regular rate” for the hours above 40. Calculating overtime pay is...more

Akerman LLP - HR Defense

Just In Time For Holiday Bonuses: Proposed New Guidance On “Fixed Salary”

Employers who compensate non-exempt employees based on the “fluctuating work week” method, take note. Last month, the Department of Labor issued a proposed rule that would permit employers to supplement the salaries of such...more

Foley & Lardner LLP

A Win-Win: DOL Proposal Will Expand Use of Fluctuating Workweek Pay (And Some Bonus/Commission Overtime Pay Reminders)

Foley & Lardner LLP on

Earlier this month, the Department of Labor (DOL) announced a proposed rulemaking that will make fluctuating workweek pay—FWW—more beneficial for employers and employees alike....more

Littler

Fall Regulatory Agenda Indicates DOL Wage and Hour Division is Working on Seven Regulatory Priorities

Littler on

The U.S. Department of Labor issued its bi-annual regulatory agenda update on November 20, 2019.  Of the 63 items listed, the Wage & Hour Division (WHD) included seven regulatory priorities.  Only one of these is new: a...more

FordHarrison

DOL Attempts to End Confusion Regarding Bonuses and the Use of the Fluctuating Workweek

FordHarrison on

The US Department of Labor’s Wage and Hour Division (DOL) is attempting to provide clarity and predictability to one of the most confusing areas of wage and hour law – the fluctuating workweek. The Fair Labor Standards Act...more

Spilman Thomas & Battle, PLLC

DOL Adopts New Salary Threshold for White Collar Overtime Exemption

The Department of Labor (“DOL”) has revised its Overtime Rule that updates the earnings thresholds necessary to exempt executive, administrative and professional employees from the Fair Labor Standards Act’s (“FLSA”) minimum...more

Woods Rogers

U.S. Department Of Labor Increases FLSA Salary Threshold

Woods Rogers on

On September 24, 2019, the U.S. Department of Labor (“DOL”) issued the final rule on the salary threshold, making 1.3 million American workers newly eligible for overtime pay.  The final rule raises the standard salary level...more

Steptoe & Johnson PLLC

1.3 Million Additional Employees May Become Eligible for Overtime in 2020

Steptoe & Johnson PLLC on

The United States Department of Labor (“DOL”) recently published its final rule governing overtime obligations under the federal Fair Labor Standards Act (“FLSA”). An employee covered by the FLSA must receive overtime pay for...more

Rosenberg Martin Greenberg LLP

Final Overtime Rule Announced

On September 24, 2019, the U.S. Department of Labor announced the Final Overtime Rule which will go into effect January 1, 2020.  The Overtime Rule changes the eligibility requirements for executive, professional and...more

Conn Kavanaugh

The New Rule is Better than the (Almost) Old Rule

Conn Kavanaugh on

The U.S. Department of Labor (the “DOL”) has issued a final rule to expand worker eligibility for overtime compensation under the Fair Labor Standards Act (“FLSA”).  The new rule increases the salary thresholds required for...more

Hutchison PLLC

Changes to Overtime Exemptions under the Fair Labor Standards Act

Hutchison PLLC on

In 2015, the U.S. Department of Labor introduced a proposed rule which would, in part, double the salary threshold required under the Fair Labor Standards Act (“FLSA”) to maintain exempt status under the “white-collar”...more

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