HRLegalNews.com » Are they still exempt if they get an overtime bonus?

Are they still exempt if they get an overtime bonus?

May 27, 2008 by Sam Narisi
Posted in: FLSA, Latest News & Views

Our team of experts fields real-life, everyday questions from HR managers and gives practical answers that can be applied by any HR pro in the same situation. Today’s question: Are they still exempt if they get a bonus for working overtime?

Question: We give some of our exempt employees an “overtime bonus” when they work more than 45 hours in a week. When that happens, they’re paid their regular weekly salary plus an extra amount per hour over 45. Can we do that and still consider the employees exempt?

Answer: Yes, you can, says employment attorney Michael Lorenger. Assuming those employees truly meet the exemption criteria, you can give them extra compensation for working more hours without threatening the exempt status. Basically, all you’re doing is paying more than the law requires.

Some companies give similar benefits by giving employees a per-day bonus if they come in on weekends, for example. But even if you calculate the extra payment based on the number of hours they work, you can still give them a salary as their primary wage and consider them legally exempt from overtime.

Share/Save/Bookmark

Tags: , , ,

2 Responses to “Are they still exempt if they get an overtime bonus?”

  1. Deanna Says:

    How is reimbursable milage computed? For example, an employee travels to the airport, takes a plane to a location, picks up a rental car for use during the week and returns it to the airport upon departure. They locate their car at the home terminal and drive home. What milage is reimbursable per the IRS?

  2. Deanna Says:

    I would appreciate learning the IRS guidelines as well as best practices.

Leave a Reply


advertisement


advertisement