News & Analysis as of

Fair Labor Standards Act (FLSA) Bonuses Employment Litigation

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

Holland & Knight LLP

Fifth Circuit: Burden of Proof on Employees to Show Bonuses Should Be Included in Overtime Rates

Holland & Knight LLP on

The U.S. Court of Appeals for the Fifth Circuit, in an issue of first impression, has answered a critical question in Fair Labor Standards Act (FLSA) overtime disputes: "Who has the burden of proof on whether bonuses are...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

Ogletree, Deakins, Nash, Smoak & Stewart,...

Darting Ahead: California Supreme Court Adopts New Formula for Flat Sum Bonuses

For decades, many employers across California relied upon established federal law governing the calculation of overtime compensation on bonuses. Under federal law, the same set of rules apply to flat sum bonuses (i.e., set...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

11 Results
 / 
View per page
Page: of 1

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
- hide
- hide