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Bonuses Employer Liability Issues Fair Labor Standards Act (FLSA)

Roetzel & Andress

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

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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

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

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

Fox Rothschild LLP on

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

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

Fox Rothschild LLP

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

Fox Rothschild LLP on

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?

Fox Rothschild LLP on

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

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

Stokes Wagner

DOL Issues Three New Opinion Letters

Stokes Wagner on

On January 7, 2020, the U.S. Department of Labor published three new opinion letters that every employer should review. The first involves an employer’s nondiscretionary bonus payment of $3,000 given to employees who...more

Bricker Graydon LLP

Wage and hour issues that frequently arise in the health care setting

Bricker Graydon LLP on

Given the unique characteristics of the health care space, wage and hour compliance can be particularly challenging for health care employers. Round-the-clock operations, staffing shortages and patient demands can create an...more

Epstein Becker & Green

The New Year Brings New Guidance on FLSA Issues from the U.S. Department of Labor

Epstein Becker & Green on

In its first installment of opinions letters in 2020, the U.S. Department of Labor’s Wage and Hour Division (“WHD”) addressed two issues under the Fair Labor Standards Act (“FLSA”): (i) the salary basis requirements in the...more

Steptoe & Johnson PLLC

Three New DOL Opinion Letters Address Wage and Hour Issues and FMLA Eligibility

Steptoe & Johnson PLLC on

On January 7, 2020, the U.S. Department of Labor published three new opinion letters – two that address compliance under the Fair Labor Standards Act (“FLSA”) and one that addresses compliance under the Family Medical Leave...more

Akerman LLP - HR Defense

Department of Labor Opinion Letters Provide Employers a Roadmap to FLSA Compliance

Last week, the U.S. Department of Labor’s (DOL) Wage and Hour Division issued two new opinion letters which clarify how employers should calculate the overtime rate when employees are paid lump-sum bonuses and when employers...more

Snell & Wilmer

The DOL Starts 2020 With a Bevy of Opinion Letters

Snell & Wilmer on

Not sitting on its laurels, the U.S. Department of Labor (DOL) has already issued three new opinion letters to begin the year. Two deal with issues under the FLSA and a third addresses issues under the FMLA....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

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

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

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

Flaster Greenberg PC

New 2020 Overtime Rule Means Employers Must Reevaluate Which Employees Are Overtime Eligible

Flaster Greenberg PC on

The wait for new overtime rules is over. As you may recall, the U.S. Department of Labor released a Final Rule which was to go into effect on December 1, 2016, but, due to a court-issued injunction, followed by change of...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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