Determining which bonuses count as 'additional renumeration'
At the end of every year, it's not uncommon for businesses' to recognize employee time and effort by awarding bonuses. Yet can incentive bonuses for hourly workers affect the calculation of overtime?
According to Business Management Daily, the Fair Labor Standards Act recognizes bonuses as being awarded to employees on the basis of work done during regular operation hours, and they are considered "additional renumeration."
Tasks performed and completed outside of operation hours or for tasks that are not required or expected, such as making referrals, getting leads or making suggestions for improvement don't fall under the category of additional renumeration.
Additional renumeration can cover numerous prizes and bonuses, though. It "pertains to prizes or bonuses awarded for cooperation, courtesy, efficiency, highest production, best attendance, best quality of work, greatest number of overtime hours, longevity and other similar awards," the source explains.
The best way to ensure employees are getting what they deserve and businesses are following the letter of the law is to consult an attorney with experience in labor laws and regulations.
According to Business Management Daily, the Fair Labor Standards Act recognizes bonuses as being awarded to employees on the basis of work done during regular operation hours, and they are considered "additional renumeration."
Tasks performed and completed outside of operation hours or for tasks that are not required or expected, such as making referrals, getting leads or making suggestions for improvement don't fall under the category of additional renumeration.
Additional renumeration can cover numerous prizes and bonuses, though. It "pertains to prizes or bonuses awarded for cooperation, courtesy, efficiency, highest production, best attendance, best quality of work, greatest number of overtime hours, longevity and other similar awards," the source explains.
The best way to ensure employees are getting what they deserve and businesses are following the letter of the law is to consult an attorney with experience in labor laws and regulations.
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