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View Full Version : Bonus $$ included in calculation reg pay rate for overtime purposes California


Charger411
07-31-2006, 12:04 PM
In researching an 'exempt' misclassification by my employer, I inadvertently discovered that between September of 2003 and June 2005 (a time period when I was not classified as exempt with this employer) that I was paid for about 155 hours of overtime @ time and ½ my normal hourly wage, but none of my bonus money (which averaged $750.00 per month) was ever included in the computations. These were production performance bonuses. Were these supposed to be factored in as far back as 2003 or were these laws changed more recently? Also, my employer wants me to meet with their on site HR Attorney tomorrow re: this issue and the misclassification as exempt for the past 9 months. Are there any pointers from the CA Attorneys out there for me? {Not to be taken as Legal Advice but just to help me avoid some major faux pas.} I would greatly appreciate any words of wisdom you could offer. Thank you.

Pattymd
08-01-2006, 04:37 AM
No, the FLSA has required that nondiscretionary bonuses be included in the "regular rate of pay" in calculating the premium portion of overtime forever (or at least, for a really really long time).

You are still within the time frame in which you can file a claim for underpaid overtime wages with the DLSE, but I'd get hopping. Time records need only be kept for 2 years under CA wage and hour laws, 3 years from "date of last entry" under the FLSA, and 4 years under CA UI laws (although that one is unlikely to require daily and weekly overtime worked records).

Good luck.

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