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Overtime and Performance Bonuses

Mary KoepenickMary Koepenick 3 Posts
in Compensation Vote Up0Vote Down
Trying to structure a pay-per-job comp program. Understand FLSA requirements regarding computing "regular rate" for a particular week and using that to determine o.t. rate. We want to pay basic rates, but provide a performance bonus monthly or quarterly that would not be truly discretionary because it would be based on achieving designated levels of production. In this situation, must we go back and recompute paid overtime to include this bonus?
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  • ShadowfaxShadowfax 910 Posts
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    [font size="1" color="#FF0000"]LAST EDITED ON 11-07-03 AT 10:32AM (CST)[/font][p]In a word: yes. Any bonus that is non discretionary, or related to effort must be part of the 'regular rate' and therefore part of the o/t calc. The bonus has to be apportioned over the period it was earned, so if it was for a weeks production, ned only go back a week - if longer, then whatever period covered. It can be a real cyclical nightmare to figure out. PS Welcome to the forum!
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