March 13, 2018

California Supreme Court Ruling on Calculating Flat Sum Bonuses in Overtime Pay is Retroactive

California Supreme Court Ruling on Calculating Flat Sum Bonuses in Overtime Pay is Retroactive

March 2018

Most California employers are already aware that when they calculate an employee’s overtime rate, the employer must include all forms of pay made to the employee.  Recently, the California Supreme Court issued an opinion clarifying how the overtime rate must be calculated when an employee is paid a flat sum bonus in a single pay period, when that flat sum bonus is not tied to an incentive for each hour the employee works.

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