News & Analysis as of

Over-Time Bonuses Employment Litigation

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

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

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

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

McNees Wallace & Nurick LLC

New FLSA Compliance Landmine: Beware Bonuses Paid by Third Parties to Your Employees!

For decades, federal wage and hour regulations have required that non-discretionary bonuses paid to employees be included in the recipients’ “regular rate” for purposes of calculating their overtime premiums.  In other words,...more

Troutman Pepper Locke

Agreement Between the Parties Dictates Whether a Third Party Bonus Should be Included in the Calculation of Overtime Pay

Troutman Pepper Locke on

Q.  A client of my company asked whether it could offer production bonuses to our employees who deliver their work product prior to the deadline.  Does the FLSA require my company to account for these third-party bonuses when...more

Parker Poe Adams & Bernstein LLP

Bonuses Paid by Third Parties Excluded From Regular Rate for Overtime Calculation Purposes

Perhaps the most frequently violated provision of the Fair Labor Standards Act is that law’s requirement that non-discretionary bonuses be included in non-exempt employees’ regular rate of pay used for purposes of calculating...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

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

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

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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