The Hidden Effects of Bonuses On An Employee’s Overtime Pay.

 In Featured, Overtime Law

It is bonus time! What if I told you that receiving a bonus may increase your overtime pay? It is understandably so, that you may be wondering how a bonus can have such a significant impact on your overtime pay.  An employer will often fail to pay the right overtime to an employee who also receives bonuses. The reason is because bonuses are likely overlooked when calculating an employee’s overtime rate.

Are you paid bonuses and overtime by your employer? If so, then pay close attention because you may be able to collect unpaid wages. How and why would you be able to collect unpaid wages? The answer is simple because it is the law under the Fair Labor Standards Act.

Failure to include bonuses (non-discretionary) in calculating the overtime rate can lead to a Fair Labor Standards Act violation, which would allow an employee to potentially collect significant sums in past overtime.

It is important to understand what type of bonus your employer is paying you. Is your bonus discretionary or non-discretionary? Discretionary bonuses are unexpected and not announced in advance to the employee. On the other hand, non-discretionary bonuses are announced to the employee and must be included in the employees overtime pay. Non- discretionary bonuses are used to encourage employees to work more steadily, rapidly or efficiently, and are designed to encourage employees to remain with an employer.

Do not forget about your unpaid overtime simply because your employer is already paying you time and a half. If you are paid non-discretionary bonuses, then the employer must pro rate such bonuses and recalculate the overtime rate due to the employee; the employee’s overtime rate must be time-and-a-half the regular rate plus the a prorated amount for the bonuses received.

Where can you find help to collect your unpaid overtime and other unpaid wages? At Herrmann Law!

Attorney Drew N. Herrmann can help you recover what is yours under the law. Mr. Herrmann has already collected a substantial amount of unpaid wages for numerous clients. Now it is time you let Mr. Herrmann collect for you! If you have any questions please contact Attorney Drew N. Herrmann.

Herrmann Law, PLLC

777 Main St. Suite 600

Fort Worth, Texas 76102

(817) 479 – 9229

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