#Bonus overtime calculation examples how to
#Bonus overtime calculation examples update

In the instance discussed in opinion letter FLSA2020-1, the first method should apply, so $300 in bonus is allocated per workweek to be included in calculating the regular rate of pay, the DOL concluded. Under the second, if there are facts that make assuming equal bonus earnings for each workweek inappropriate, the employer may assume that the employee earned an equal amount of bonus each hour of the pay period. Under the first method, if the bonus covers a longer period than a weekly pay period, the employer may assume that the employee earned an equal bonus amount each week of the period. The regulations give two methods of computing overtime pay for bonus earnings that can't be identified with particular workweeks.

The Fair Labor Standards Act (FLSA) regulations provide that if a bonus covers only one weekly pay period, the bonus is added to the employee's other earnings, and the total earnings are divided by the total hours worked. The bonus was paid regardless of whether the workers completed the additional eight weeks. The employer told workers that they would be eligible to receive a lump-sum bonus of $3,000 if they completed 10 weeks of training and agreed to an additional eight weeks of training. In FLSA2020-1, the DOL addressed an employer's question asking what method should be used to calculate overtime payments resulting from a nondiscretionary lump-sum bonus when bonus earnings cannot be identified with particular workweeks.

In a third opinion letter, the DOL stated that a health district may be considered a separate entity from an Ohio county for purposes of determining whether the health district is an employer covered by the Family and Medical Leave Act (FMLA). The DOL issued another wage and hour opinion letter stating an employer that pays educational consultants on a per-project basis could claim the employees were paid on a salary basis and therefore were exempt, assuming they met the duties tests.

#Bonus overtime calculation examples update

The bonus should be allocated equally to each week of the training period, according to the department, which said it would update its Field Operations Handbook to reflect this conclusion.

#Bonus overtime calculation examples how to

вЂ‹In one of three recent opinion letters, the Department of Labor (DOL) explained how to calculate overtime pay for bonuses given for the completion of training over a period longer than one workweek.