DOL Guidance Clarifies When Percentage-Based Bonuses May Avoid Overtime Recalculations

The U.S. Department of Labor (DOL) recently issued guidance addressing when employers must include nondiscretionary bonuses in an hourly or non-exempt employee’s regular rate of pay under the Fair Labor Standards Act (FLSA). The guidance is important for employers that offer bonus programs tied to employee earnings because, if properly structured, certain percentage-based bonuses may avoid later overtime recalculations.... By: Krieg DeVault