Nondiscretionary Bonuses Included in Overtime

Non-discretionary bonuses should be included in overtime pay. Overtime pay should be determined according to an employee’s average rate of pay, according to the Fair Labor Standards Act. However, the bonus is still completely at the employer’s discretion. Non-discretionary bonuses are promised and expected, and should be paid based generally on quality of work.

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Include Nondiscretionary Bonuses in Overtime