Are Bonuses Considered in An Employee's Overtime Rate?

Non-discretionary bonuses must be included and considered when calculating an employee's regular hourly rate for purposes of overtime pay.  Examples of non-discretionary bonuses include bonuses promised in an agreement (such as an employment contract or collective bargaining agreement), bonuses tied to performance evaluations, incentive bonuses, service anniversary bonuses, attendance bonuses, production bonuses and retention bonuses.  Basically, a non-discretionary bonus is one payable if the employee does something, i.e., exceeds a sales goal, or, in some cases, doesn't do something, i.e., does not miss any workdays.

Lexington, Kentucky overtime lawyer Robert Abell helps employees and individuals recover the overtime and wages they've earned but not been paid; contact him at 859-254-7076.