DOL Opinion Letter: Bonus payments based on full-year employment and section 7(e)(3)(a)
Topic: Fair Labor Standards Act (FLSA)
Type: Guidance
Jurisdiction: National
Summary: This is a response to a letter regarding whether certain bonus payments to employees may be excluded from the calculation of the regular rate of pay for overtime purposes under Fair Labor Standards Act (FLSA) section 7(e)(3)(a) (copy enclosed). It is our opinion that the payments made pursuant to your client?s bonus plan must be included in the regular rate.
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