News & Analysis as of


California Supreme Court Confirms Special State Rule on Calculating Overtime Premiums Arising From Bonuses

In Alvarado v. Dart Container Corporation of California, the California Supreme Court clarified how a flat sum bonus – a bonus that is independent of the number of hours worked by an employee – must be enhanced to comply with...more

Calculating Overtime Pay When Paying a Flat Sum Bonus in a Single Pay Period

by Carlton Fields on

Failing to comply with last week’s California Supreme Court order concerning overtime pay and lump sum bonuses may expose you to costly class actions like so many other California employers....more

California Supreme Court Breaks With FLSA on Overtime Due for Flat-Sum Bonuses

• In Alvarado v. Dart Container Corp. of California, the California Supreme Court held that California law—unlike federal law—requires employers to calculate overtime by treating flat-sum bonuses as if they were earned during...more

California Supreme Court Determines How Flat Sum Bonuses Factor into Overtime Calculation

by Littler on

The California Supreme Court recently decided the question of how an employee’s overtime pay rate should be calculated when the employee has earned a flat sum bonus during a single pay period....more

California Supreme Court Deviates From Federal Regulations on Calculating Regular Rate of Pay on Flat Rate Bonuses

by Snell & Wilmer on

On March 5, 2018, the California Supreme Court decided Alvarado v. Dart Container Corp., and formally diverged from the federal regulations on calculating overtime for flat rate bonuses....more

California Supreme Court's Recent Overtime Ruling Likely to Cause Payroll Problems

by FordHarrison on

On March 5, 2018, the California Supreme Court issued a ruling clarifying how employers must handle flat-sum bonuses (i.e., additional compensation that does not change depending on the number of hours worked by an employee)...more

Alvarado v. Dart Container Corporation of California

On March 5, 2018, the California Supreme Court issued its decision in the Alvarado v. Dart Container Corporation of California case. The Court’s decision will have far reaching consequences for employers throughout the state...more

Calculating Overtime Value Of Flat-Sum Bonus Must Be Based On Actual Non-Overtime Hours Worked, California High Court Holds

by Jackson Lewis P.C. on

The California Supreme Court has held that, under state law, when an employee earns a flat sum bonus during a pay period, the overtime pay rate will be calculated using the actual number of non-overtime hours worked by the...more

Calculating Bonus Payments into the Overtime Rate: California Supreme Court Clarifies Flat Rate Bonuses

by Davis Wright Tremaine LLP on

California employers who pay bonuses to nonexempt employees should take a fresh look at the way they calculate their nonexempt employees’ overtime rates, based on the March 5, 2018 California Supreme Court decision in...more

California Supreme Court Departs From Federal Law in Overtime Calculations

by McGuireWoods LLP on

Although most states follow federal law in calculating overtime and other wage and hour issues, California does not. The California Supreme Court reinforced this principle on March 5, 2018, when it held in Alvarado v. Dart...more

Federal Overtime Formula Falls Flat — California Supreme Court Adopts DLSE Interpretation for Flat Rate Bonuses

In a break from federal law, the California Supreme Court clarified in Alvarado v. Dart Container Corp. the proper formula for calculating flat-rate bonuses into overtime pay under California law. The Court adopted the...more

California Supreme Court Clarifies Calculation of Overtime on Flat Sum Bonuses

by Payne & Fears on

On March 5, 2018, in a unanimous decision, the California Supreme Court in Alvarado v. Dart Container Corporation of California clarified how employers must calculate the regular rate of pay for purposes of compensating an...more

California Supreme Court Establishes Overtime-Calculation Formula for Employees Receiving Flat-Sum Bonuses

Under both federal and state law, overtime compensation owed to a nonexempt employee must be based on the employee’s “regular rate of pay.” That regular rate includes not only the employee’s standard hourly rate but also an...more

California Supreme Court Embraces Employee-Friendly Formula For Calculating OT Pay

by Fisher Phillips on

In a unanimous decision, the California Supreme Court today issued a ruling that will have far-reaching effects for employers who pay employees a flat rate bonus and overtime. Specifically, the court ruled that when...more

Federal Formula For “Flat Sum” Bonus Overtime Calculation Rejected

by Seyfarth Shaw LLP on

Seyfarth Synopsis: California employers must use the formula prescribed by the Division of Labor Standards Enforcement Manual to calculate overtime on flat sum bonuses, not the bonus overtime formula used under federal law....more

8th Circuit: Employer Bound by Promise to Pay Performance Bonus to At-Will Employees

by McGuireWoods LLP on

Employers who implement bonus programs to attract and retain key employees may be bound to the terms of those programs, the 8th U.S. Circuit Court of Appeals recently held. In Boswell v. Panera, LLC, the court affirmed that...more

More flexibility for employers in Belgium in 2018: Profit Bonus and E-Commerce

A new bill, the so-called Programme Act of 25 December 2017, introduces as from 1 January 2018 a series a new legislative initiatives in Belgium which offer more flexibility for employers. 1. Tax friendly profit sharing...more

What Does Tax Reform Mean for Retail?

by Goulston & Storrs PC on

We all know now that the federal corporate tax rate for many retailers is dropping this year from an industry effective average rate of 32.9% to 21%, as a result of changes implemented by the so-called “Tax Cuts and Jobs Act”...more

Employer Cannot Cap Bonus Plan Already in Effect

Several years ago, we received a call from a client’s vice president of human resources who was facing an unusual problem. The company had a regional salesperson who was having an extraordinary year....more

Keep Rollin’ Rollin’ Rollin’: DOL Reissues 17 Opinion Letters That Had Been Withdrawn Under the Obama Administration

by Dickinson Wright on

In late June 2017, the United States Department of Labor (DOL) announced it would be reinstating Opinion Letters issued by its Wage and Hour Division, which was a practice that had ceased back in 2010. This announcement is...more

Late Limit on Bonus Plan Has No Effect

by Sherman & Howard L.L.C. on

The 8th Circuit Court of Appeals recently offered a refresher course on contract formation, as applied to employee bonus plans. The employer promised substantial bonuses, payable in five years, provided the eligible at-will...more

Be Aware Belgium December 2017

by DLA Piper on

Can an employer be exempted from payment of a mobility allowance provided by a collective bargaining agreement approved at the sectoral level if there is a similar benefit in place within the company? In its judgment of 25...more

Delaware Supreme Court Reins in Stockholder Ratification of Director Compensation

• Directors were not entitled to stockholder ratification defense where stockholders only approved the general parameters of director and employee bonuses • This marks the first time in nearly 60 years that Delaware’s...more

Employment News - December 2017 #2

by Hogan Lovells on

In this weeks issue: - Employer vicariously liable for employee's data breach - Time and time again - no implied right to bonus through custom and practice - Making progress - gender pay gap toolkit...more

Year-End Tax Planning Tips

by Bowditch & Dewey on

If Congress is successful in lowering tax rates for at least some taxpayers in 2018, there are several year-end taxing-saving tips to consider prior to December 31st....more

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