Hourly employees receive overtime based on their regular rate of pay. In one instance, drivers paid hourly were entitled to bonuses based on certain factors (punctuality, attendance, driving safety). The DOL said that these bonuses must be included in the regular rate of pay when calculating a driver’s overtime payments. The bonuses in this situation weren’t discretionary and were made pursuant to a fixed company policy. Under the Fair Labor Standards Act, a bonus paid to a non-exempt worker can be excluded from the regular rate of pay only if it’s made in the sole discretion of the employer, determined at or near the end of a period in which work is performed, and is not made pursuant to any prior agreement or promise. #IdeaoftheDay
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