News & Analysis as of

Employer Liability Issues Bonuses Over-Time

Jackson Lewis P.C.

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

Jackson Lewis P.C. on

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

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

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

Fisher Phillips

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

Fisher Phillips on

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

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

Fisher Phillips

Snapshot on Manufacturing Industry: February 2022

Fisher Phillips on

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

Fisher Phillips on

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

Fisher Phillips on

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

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

Bricker Graydon LLP on

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

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

McAfee & Taft

New DOL guidance on non-discretionary bonuses and per-project pay

McAfee & Taft on

On January 7, 2020, the Department of Labor’s Wage and Hour Division (DOL) released two opinion letters providing guidance for dealing with issues arising under the Fair Labor Standards Act (FLSA). While DOL opinion letters...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

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