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Notaboss
01-15-2009, 12:53 PM
Another question. My company recently started paying us something called a reg rate recalc. I understand the math on these, what I'm fuzzy on is what "incomes" do they have to do the reg rate recalc on?

cbg
01-15-2009, 01:36 PM
I don't mean this to be snarky, I really don't. But I, for one, have no idea what a reg rate recalc is. I freely admit that I am not a payroll person, but could you give us an idea what they are?

Notaboss
01-15-2009, 02:25 PM
It's ok, I just asked someone else and they said it's short for regular rate recalcuations. basically, if you get an "incentive" in the same time that you get overtime something is calculated based on regular rate recalculations, and you get a little extra pay. maybe i'm way wrong on this. if i am, never mind my questions.

DAW
01-15-2009, 03:25 PM
It is pretty straightforward. Basically lets over simplify things and say that all flat dollar payments not based on hours worked are called "bonus" payments and that legally all "bonus" payments are called either "discretionary" and "non-discretionary" bonus payments (NDBP). A discretionary bonus payment is one that legally is not directly or indirectly based on hours worked and for which the employer can legally not give you without getting into trouble. A NDBP is any bonus payment that cannot legally be considered discretionary. [This is actually pretty much the way the regulation looks at things].

Example. Bob makes $10/hr and works 50 hours this workweek. Bob gets paid $550 ($400 + $150). So far, so good. But a month later the employer decides that according to the employee manual Bob did such a good job that week, Bob is due an additional $100. This is a NDBP. These means that the overtime calculation is now retroactively wrong. The new re-calculation goes something like this:

50 hrs @ $10/hr = $500, plus $100 NDBP equals $600 before OT premium. The regular-rate-of-pay is now $12/hr (not $10/hr). The OT premium is now 10 hours @ $12/hr times 50% = $60. So Bob is not due $100 more, but rather $160 more. The NDBP retroactively causes the original OT calculation to change. NDBP are a real pain in the hinny.

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