Under the Fair Labor Standards Act, hourly employees are entitled to overtime pay when they work more than 40 hours per workweek, with those additional hours paid at a rate of time and a half their regular hourly pay.
That regular rate of pay may include some kinds of bonuses if those are not discretionary.
It’s up to employers to know exactly what pay elements go into the regular rate of pay.
Compliance tip: Consult with accountants and attorneys, HR experts and the federal Department of Labor to figure out how to structure your pay systems so they satisfy Fair Labor Standards Act requirements.
The price of noncompliance can be high. Employees can sue for alleged unpaid overtime going back two years, unless the violation was willful. If it was willful, employees are entitled to three years of back pay.
Regardless of whether the back pay is for two years or three, it is doubled as a penalty.
All that math adds up to one con...(register to read more)