When Do Bonuses Have to Be Included in Non-Exempt Employees’ Regular Rate of Pay When Calculating Overtime? Some Recent Developments Shed Light

One of the most often misunderstood Fair Labor Standards Act (“FLSA”) provisions is 29 U.S.C. § 207(e)(3), which excludes bonuses from non-exempt employees’ regular rate of pay if the employer retains discretion over (a) whether such bonus should be paid in the first place, and (b) the amount of the bonus. Only if both criteria …read more »