Paying Bonuses to Non-Exempt Employees: Avoiding Class-Wide Overtime Violations
Nonexempt employees must receive overtime pay based on their hourly wage. How do bonuses fit in?
The law states that employers have to pay their employees overtime based on their hourly wage. Not all employers are aware of the requirement that overtime premiums could also be required to be paid on supplement compensation as well. Bonuses are a common example.
S. Sean Shahabi is a Principal in the Orange County, California, office of Jackson Lewis P.C. His practice is focused on employment litigation on behalf of management as well as advice and counseling on a wide array of employment law issues. Mr. Shahabi is a seasoned litigator with over fifteen years experience defending employers in both state and federal court in wage and hour class actions, and against wrongful termination, discrimination, and harassment claims. He has represented employers in a broad array of industries and of varying sizes, ranging from Fortune 50 companies to small businesses. Mr. Shahabi also regularly counsels employers on personnel and wage and hour compliance matters, and in the preparation of employment agreements, policies, and compensation plans.
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