As we enter the winter holiday season, many employers begin to contemplate paying year-end bonuses to employees. It is a nice gesture of appreciation for work performed throughout the year and welcomed by employees. However, the payment of bonuses continues to be an area where many employers fail to comply with the Fair Labor Standards Act (“FLSA”). At a recent employment law webinar, the Regional Director for the Wage and Hour Division of the US Department of Labor underscored the ongoing compliance problem with employers failing to calculate the correct overtime rate. The typical problem occurs in the calculation of the “regular rate of pay” for overtime hours worked.
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