Incentive and Bonus pay
SVHRAZ
14 Posts
Recently I attended a seminar and on the Compensation section we were told that any incentive and bonus pay that we offer our employees for example pay for Employee referral, needs to be calculated into the employee's overtime pay. Is anyone familiar with this, I tried looking in the DOL website but could not find any resources. We are Arizona based for profit company. If you are familiar with this, is there any way that you could give me details as to what exactly that means? I know when we attended the seminar many of the participants looked puzzled and confused and felt that their payroll department was not practicing this process? Please help
Comments
Arizona Employment Law Letter has covered this very topic in the past. If you are a subscriber, you can go to the home page for this website, log in in the upper-right corner, and search the newsletter archives for the 50 states and D.C. (but limit the search to Arizona only) for the keywords "overtime pay bonus." A couple of articles will pop up. Click on the one that's titled, "FLSA's rules on bonus payments." If you have trouble finding it, e-mail me offline or call, and I'll walk you through it. If you happen to have a binder full of hard copies of the previous issues, check out the September 2001 issue. Hope this helps. tk
Tony Kessler, director of editorial
M. Lee Smith Publishers LLC
(615) 661-0249 ext. 8068
[email]tkessler@mleesmith.com[/email]
Thank you so much for your guidance. I do have that issue, my boss happens to be a subscriber and she's kept all the issues.
What I get from it is that this applies to nonexempt employees and there are certain criterias the "bonus" should meet in order to be recalculated into the employees regular and or overtime pay. I am still a little confused....
Just to give you a couple of examples we have an employee referral bonus, given to the employee who referred a new hire and that new hire has remained employed with the company for 90 days+, we also have a Buddy program here on property, the "buddies" are paid an incentive if the new employee stays with the company for 90 days+ and then an additional bonus if the employee is still employed after one year-would this be considered a "bonus" that needs wage recalculation?