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The Law at Work: OT rate for flat bonus must be based on non-overtime hours worked

Except for executives, professionals, and others exempt from overtime rules, California employees are legally entitled to one-and-half times their “regular” hourly rate of pay for hours over eight in a day, over 40 in a week, and for all hours worked on the seventh day in a workweek.  However, in his The Law at Work Column in the San Diego Union-Tribune, Shareholder Dan Eaton examines the recent California Supreme Court ruling in Alvarado v. Dart Container to explain how an employee’s overtime pay rate is determined when the employee earns a flat bonus during a single pay period in which he works overtime, as well as the number of hours by which the bonus should be divided to calculate the per-hour value of the bonus.

Read the full article here.

April 2nd, 2018  |  Categories: Employment Law