News & Analysis as of

Wage and Hour Bonuses Fair Labor Standards Act (FLSA)

Dentons

Navigating Wage and Hour Challenges

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Healthcare entities have faced increasing pressure from the Department of Labor regarding wage and hour issues. Some of this is a hangover from COVID and the long hours many healthcare workers endured trying to meet the needs...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

Fisher Phillips

How Will the New Overtime Rule Impact Your Business This Comp Season? 10 Tips for Employers

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As the final quarter of 2024 begins, many employers are turning to the year-end review process. While you’re planning for raises, bonuses, and other employee incentives this comp season, you’ll need to account for the new...more

Fisher Phillips

Reclassifying Employees to Non-Exempt Status? Consider a “Percentage Bonus” to Avoid Costly Overtime Pay Mistakes

Fisher Phillips on

Many employers are planning to reclassify employees to non-exempt status now that the Labor Department is significantly raising the salary threshold for employees to be exempt from overtime pay. You likely know that...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

Warner Norcross + Judd

No Good Deed Goes Unpunished: Uptick in FLSA Litigation Over Attendance Bonuses

Warner Norcross + Judd on

In the wake of the pandemic, some employers — opting for the carrot over the stick — have started offering weekly attendance bonuses to incentivize a return to the office. We have recently seen an uptick in employee-filed...more

Husch Blackwell LLP

DOL Proposes Substantial Increase in Salary Threshold Levels for Overtime Exemptions

Husch Blackwell LLP on

On August 30, 2023, the Department of Labor (DOL) issued a proposed rule regarding the Fair Labor Standards Act (FLSA) overtime exemptions, most notably increasing the standard salary threshold for the so-called “white...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

Fisher Phillips

Top 10 Ways Employers Can Avoid Regular Rate Wage Mistakes On Their 2023 Resolutions Lists

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When the US Department of Labor’s Wage and Hour Division published a Final Rule on the regular rate in late 2019, it gave employers the freedom to more easily offer perks and benefits to their employees without running afoul...more

Fox Rothschild LLP

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

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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

Fox Rothschild LLP

COVID Related Wage Increases Includible In Regular Rate In FLSA Overtime Case

Fox Rothschild LLP on

I have blogged many times about cases where relatively small amounts of compensation, bonus type compensation, are not included when an employer calculates the regular rate for overtime and a class action ensues. Now, this is...more

Jackson Lewis P.C.

Bonuses Prompted By Federal Tax Reform And Pay For Charitable Volunteer Time Were Properly Excluded From Employees’ Overtime...

Jackson Lewis P.C. on

Affirming the dismissal of wage and hour claims against “big box” retailer Lowe’s, the Fourth Circuit Court of Appeals agreed that company bonuses, provided to employees following 2018 revisions to federal tax law, were...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

Fox Rothschild LLP

Great Fifth Circuit Decision On Exclusion Of Bonus From Regular Rate Under FLSA

Fox Rothschild LLP on

I have often blogged about the thorny issue of bonuses under the FLSA and when those bonuses must be included in the regular rate of employees for overtime purposes. The crucial test is whether the bonus is discretionary,...more

Parker Poe Adams & Bernstein LLP

Employee Bears Burden of Showing Bonus Was Non-Discretionary in Overtime Claim

One of the most frequently violated provisions of the Fair Labor Standards Act involves the effect of bonuses or other incentive compensation on the rate used to calculate overtime. For non-exempt employees, the employer must...more

Morgan Lewis

DOL: Employers Offering Incentive-Based Pay Can Use Fluctuating Work Week Method to Calculate OT

Morgan Lewis on

The US Department of Labor (DOL) published a Final Rule on June 8 confirming that paying bonuses, commissions, and other incentive-based pay to salaried, nonexempt employees does not disqualify employers from using the...more

Proskauer - Law and the Workplace

DOL Amends Regulation on “Fluctuating Workweek” Method of Pay

For almost 80 years, it has been the law that an overtime-eligible employee whose hours fluctuate from week to week and who agrees to receive a fixed weekly salary covering all hours of work is entitled to a halftime premium...more

Franczek P.C.

DOL Green Lights Bonuses for Employees with Fluctuating Work Schedules

Franczek P.C. on

The U.S. Department of Labor (DOL) has issued a final rule under the Fair Labor Standards Act (FLSA) expressly authorizing employers to offer bonuses, hazard pay, and other premiums to employees whose hours, and regular rate...more

Fisher Phillips

Attendance Bonuses During COVID-19 Rebuilding Can Lead To Unintended Legal Consequences

Fisher Phillips on

As the nation’s political leaders discuss the easing of the various shelter-in-place orders in an effort to re-start the economy, businesses have begun making their own re-start plans – and they often include bonus programs...more

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