Bonuses

Nondiscretionary bonuses must be included in determining the regular rate of pay for computing overtime when such bonus is based upon hours worked, production or proficiency.

Employers generally do not have to include discretionary bonuses or monies paid as gifts at a holiday or other special occasions for purposes of determining the regular rate of pay.

Employers often provide employees with nondiscretionary bonuses but fail to include these bonuses when calculating the amount of overtime due to the employee. By excluding nondiscretionary bonuses from the overtime calculation, employers may be paying the employee less overtime than is actually earned.

A complex set of laws govern the requirements that California employers provide non-exempt employees with overtime when the employee earns other types of benefits in addition the employee’s hourly wages. Numerous exceptions limit what benefits are included in calculating the overtime rate of pay to an employee.

To navigate the complex statutes regarding whether you are receiving overtime in compliance with California law, you need to speak to an experienced attorney who is familiar with the law in this area.

If you believe that your employer has failed to follow the law in payment of your wages, contact Lavi & Ebrahimian, LLP today for a free consultation with an experienced employment attorney who will evaluate your options under the law to enable you to obtain the most complete relief possible.

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