News & Analysis as of

Bonuses Over-Time

Fisher Phillips

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

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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

Warner Norcross + Judd

No Good Deed Goes Unpunished: Uptick in FLSA Litigation Over Attendance Bonuses

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In the wake of the pandemic, some employers — opting for the carrot over the stick — have started offering weekly attendance bonuses to incentivize a return to the office. We have recently seen an uptick in employee-filed...more

Husch Blackwell LLP

DOL Proposes Substantial Increase in Salary Threshold Levels for Overtime Exemptions

Husch Blackwell LLP on

On August 30, 2023, the Department of Labor (DOL) issued a proposed rule regarding the Fair Labor Standards Act (FLSA) overtime exemptions, most notably increasing the standard salary threshold for the so-called “white...more

Fox Rothschild LLP

The “Regular Rate” For FLSA Purposes Can Be A Confusing Concept For Employers And An Expensive One!

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I read an interesting post by Frank Shuster of Constangy, Brooks, Smith on the thorny and often misunderstood issue of the “regular rate” and what that concept entails for compliance with the FLSA. Many employers,...more

Fox Rothschild LLP

No Overtime on Overtime – a Qualified Win for Employers

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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

Fisher Phillips

The Road to Hell is Paved with Good Intentions: Top 7 Wage and Hour Mistakes for Hospitality Employers to Avoid

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Employers in the hospitality industry have been through it all in recent years – from the devastation of the pandemic to ongoing labor shortages to an impending recession. These challenges and dramatic changes have surely...more

CDF Labor Law LLP

Appellate Court Holds That Percentage Bonuses Can Be Calculated Using FLSA Method

CDF Labor Law LLP on

In a pro-employer decision addressing the overlap of federal and California wage and hour law, the California Court of Appeal for the Second Appellate District upheld summary adjudication for the employer, finding that the...more

Fisher Phillips

Top 10 Ways Employers Can Avoid Regular Rate Wage Mistakes On Their 2023 Resolutions Lists

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When the US Department of Labor’s Wage and Hour Division published a Final Rule on the regular rate in late 2019, it gave employers the freedom to more easily offer perks and benefits to their employees without running afoul...more

Fox Rothschild LLP

Not Including Promised Bonuses In Regular Rate A Big No-No!

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It is black letter FLSA canon that a promised bonus, such as a production bonus, or longevity bonus, must be included in the regular rate of employees who work overtime for the period of time covered by the bonus. This maxim...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

Haynsworth Sinkler Boyd, P.A.

Bonuses & Calculating an Employee’s Regular Rate of Pay for Overtime

The Fair Labor Standards Act (FLSA) requires that non-exempt employees be paid no less than time and one-half their regular rate of pay for all hours worked over 40 hours in a workweek. How should an employer calculate an...more

Fox Rothschild LLP

Bonuses Must Be Included In Regular Rate For Non-Exempt Employees: Another Cautionary Tale?

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What employers often miss when calculating proper overtime is that they must include in the regular rate different kinds of supplemental payments that non-exempt people receive. If they do not, they are not paying properly. ...more

Fisher Phillips

Snapshot on Manufacturing Industry: February 2022

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Welcome to FP Snapshot on Manufacturing Industry, where we take a quick snapshot look at the most significant workplace law developments over the past month with an emphasis on how they impact manufacturers. OSHA Penalties...more

Fisher Phillips

Top 10 Wage and Hour Trends for 2022 – and What Employers Should Do to Prepare

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We recently provided our predictions for what employers could expect to see in the wage and hour field over the next year as part of our FP Forecast series – but we had too many insights to fit into that edition. So we’ve...more

Jackson Lewis P.C.

California’s Labor Commissioner Publishes FAQ for Garment Protection Act

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In September 2021, California’s Governor signed Senate Bill (SB) 62 which expands the definition of the garment manufacturing industry for purposes of wage claim enforcement to include brand guarantors. A brand guarantor is...more

Fisher Phillips

The Importance of Getting the California “Regular Rate” Right

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While most California employers are familiar with the “regular rate” from calculating non-exempt employees’ overtime payments, changes in the law make clear that employers will now need to perform the same regular rate...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Ninth Circuit Reverses $100+ Million Wage Statement Ruling Against Walmart

On May 28, 2021, the Ninth Circuit Court of Appeals issued a significant ruling in Magadia v. Wal-Mart Associates, Inc., on both California’s wage statement laws and standing to pursue claims under the Private Attorneys...more

Mintz - Employment Viewpoints

Ninth Circuit Clarifies Requirements on Retroactive Overtime Pay Adjustments for Bonuses

Bonuses and their impact on an employee’s “regular rate of pay” have long been a proverbial thorn in the side of California employers. The nondiscretionary nature of most bonuses (even those bonuses employers attempt to...more

Bricker Graydon LLP

[Webinar] New Developments and FAQs in Wage and Hour Law - November 17th, 12:00 pm - 1:00 pm EST

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Bricker & Eckler’s annual “Hot Topics” seminar is going virtual this year! This series provides human resources professionals and in-house attorneys with insight into ongoing and emerging labor and employment issues. We...more

Epstein Becker & Green

Time Is Money: A Quick Wage-Hour Tip on … Regular Rate Exclusions Applicable to Year-End Bonuses

Epstein Becker & Green on

With the end of the year just around the corner, many employers may be contemplating giving year-end bonuses to their non-exempt employees. And bonuses, year-end or otherwise, can create problems for employers when it comes...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

Fox Rothschild LLP

Great Fifth Circuit Decision On Exclusion Of Bonus From Regular Rate Under FLSA

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I have often blogged about the thorny issue of bonuses under the FLSA and when those bonuses must be included in the regular rate of employees for overtime purposes. The crucial test is whether the bonus is discretionary,...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

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