Bonus payments and overtime calculations
HRQ
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I understand that all "remuneration" has to be included in the regular rate of pay when calculating overtime rates. Remuneration includes "non-discretionary bonuses."
Our current non-exempt staff bonus plan does not meet the DOL's definition of "discretionary." (29 CFR 778.211) The plan is announced well in advance, the employee must remain actively employed on the day bonuses are issued, the bonuses are a result of are for group performance.
Having said all that, retroactively calculating overtime based on monthly bonus payments would be incredibly cumbersome for us, and I am having a very hard time believing that we actually have to do this. Our payroll software can't handle this, so my assistant would have to calculate the difference in OT earnings manually, usually around 30-150 employees every month.
Do any of you pay non-discretionary bonuses to non-exempt staff, and if so, how do you handle including it in your overtime calcs?
Our current non-exempt staff bonus plan does not meet the DOL's definition of "discretionary." (29 CFR 778.211) The plan is announced well in advance, the employee must remain actively employed on the day bonuses are issued, the bonuses are a result of are for group performance.
Having said all that, retroactively calculating overtime based on monthly bonus payments would be incredibly cumbersome for us, and I am having a very hard time believing that we actually have to do this. Our payroll software can't handle this, so my assistant would have to calculate the difference in OT earnings manually, usually around 30-150 employees every month.
Do any of you pay non-discretionary bonuses to non-exempt staff, and if so, how do you handle including it in your overtime calcs?
Comments
That would be the reason we only pay non-discretionary bonuses to exempt staff. Sorry I can't be of more help.