News & Analysis as of

Bonuses Over-Time State Labor Laws

Jackson Lewis P.C.

Recent Decision on Nondiscretionary Performance Bonuses in Pay Calculations Has Wide-Ranging Implications for Illinois Employers

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In Illinois, nondiscretionary “performance bonuses,” such as bonuses paid in recognition of employees satisfying certain performance and safety metrics and seniority goals, must be factored into employees’ regular rate of pay...more

Roetzel & Andress

Illinois Supreme Court Holds Overtime Rate Must Include Non-Discretionary Bonuses Unless They Are Gifts

Roetzel & Andress on

The Illinois Supreme Court held employers violate overtime law by not including non-discretionary bonus payments when calculating employees’ overtime rate. The case is Mercado v. S&C Electric Co., 2025 IL 129526 (Jan. 24,...more

Constangy, Brooks, Smith & Prophete, LLP

The Holiday Pay Playbook: Regular rate, holiday bonuses, and California overtime

California wage and hour law is never so confusing as during the holiday season. Beyond making sure that employees receive their paychecks on time, employers must correctly determine the “regular rate of pay" so that they can...more

BakerHostetler

Is Your Payroll Department Ready to Close Out 2024 and to Start 2025?

BakerHostetler on

The FLSA’s minimum wage and overtime requirements do not apply to any employee employed in a bona fide executive, administrative, or professional (EAP) capacity, nor do they apply to highly compensated employees who perform...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

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

Seyfarth Shaw LLP

Regular Rate Refresh: Calculating Overtime for California Employees

Seyfarth Shaw LLP on

Seyfarth Synopsis: While paying employees in California is often a challenge, the regular rate of pay presents a minefield of different formulas for employers to navigate. From what amounts to include, to how the calculation...more

Seyfarth Shaw LLP

Overtime! DOL Final Rule Adds More Eligible Receivers

Seyfarth Shaw LLP on

Seyfarth Synopsis: The United States Department of Labor (DOL) released its final overtime rule on Tuesday, September 24, 2019, increasing the minimum salary level for exempt status to $35,568 per year for a full-time...more

Skadden, Arps, Slate, Meagher & Flom LLP

Employment Flash - September 2019

This edition of Employment Flash looks at a series of recent NLRB decisions, many of which apply to all employers, not just those with unionized employees. We also discuss other U.S. federal and state labor and...more

Fisher Phillips

NJ Employers Are One Step Closer To Mandatory Paid Sick Leave - State DOL Publishes Poster And Proposed Regulations In Advance Of...

Fisher Phillips on

In just a few short weeks, New Jersey employers will be required to comply with the state’s new Paid Sick Leave Act. Once October 29 is upon us, New Jersey employers of all sizes will need to provide up to 40 hours of paid...more

Downey Brand LLP

California Supreme Court Clarifies Overtime Calculation Involving Flat Sum Bonuses

Downey Brand LLP on

In a less-than-favorable decision for employers – Alvarado v. Dart Container Corporation – the California Supreme Court addressed how to calculate the overtime pay rate when the employee earns a non-production, flat sum bonus...more

Ervin Cohen & Jessup LLP

Employment Law Reporter May 2018: No Good Deed Goes Unpunished – California Supreme Court Decision May Change the Way Employers...

California is a difficult landscape for employers, and last month, the California Supreme Court made that landscape all the more difficult. In a case called Alvarado v. Dart Container Corp., the California Supreme Court...more

Payne & Fears

Key California Employment Law Cases: March 2018

Payne & Fears on

This month’s two key California employment law cases are both significant decisions involving wage and hour laws. Alvarado v. DART Container Corp. of Cal., 4 Cal. 5th 542 (2018) - Summary: California formula for...more

Best Best & Krieger LLP

California Departs From the Federal Overtime Calculation Standard - State Supreme Court Retroactively Adopts California Division...

California businesses must follow a different standard than that allowed under the federal rules when calculating overtime to address flat sum bonuses. ...more

Farella Braun + Martel LLP

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

Carlton Fields

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

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

Littler

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

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

Snell & Wilmer

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

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

FordHarrison

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

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

Jackson Lewis P.C.

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

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

Davis Wright Tremaine LLP

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

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

Seyfarth Shaw LLP

Federal Formula For “Flat Sum” Bonus Overtime Calculation Rejected

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

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