It’s that time of year where employers and employees alike get into the holiday spirit. Being the wage and hour blog that it is, I thought about sharing a few general holiday reminders (keep in mind I’m keeping this super simple just to toggle your brain):
- Hourly employees who are provided a non-discretionary bonus must have that bonus layered back over their wages for the applicable period and included into the regular rate for overtime purposes (and thus, additional monies may be due the employee because of a bonus).
- Think of a “discretionary” bonus as a “just because” bonus – there are no metrics, the employee does not know how to “earn” it, it is just something extra, typically unexpected.
- A non-discretionary bonus is based on something (i.e. if the company does well, you will get 1% annual bonus; if you don’t go over on absences you will get $500, if x then y).
- Employees cannot “volunteer” to perform their regular job whether it be for a company fundraiser, holiday party, etc. (well, they can, but they have to be paid at least minimum wage and overtime, if applicable).
- Bonuses are “wages” – they should be paid like any other payroll (refrain from cash, gift cards, etc.).