Non-Discretionary Bonus Payments & Their Effect on Overtime Calculations for Non-Exempt Employees - HR Training
The Fair Labor Standards Act (?FLSA?) requires all employers to pay non-exempt employees at least the federal minimum wage for all hours worked. When a non-exempt employee works over 40 hours in a single workweek, the FLSA requires employers to pay overtime at a rate of one and one-half times that employee?s regular rate of pay. What happens when non-exempt employees earn a bonus on top of their regular rate of pay during a workweek in which they work over 40 hours? The answer depends on the type of bonus paid.
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