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Lump-Sum Payment for hourly employee: Ohio Federal

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  • Lump-Sum Payment for hourly employee: Ohio Federal

    The scenario:
    We have a retired employee who will be returning on an as needed basis for transition purposes. This individual will be receiving an hourly rate for these services. In addition to the hourly rate, we have agreed to give the PT hourly employee a lump-sum stipend of $250.00 per pay.

    What are the wage and hour rules that we must follow for this? What is the best way to process the lump-sum payment?

    Thank you,


  • #2
    Just make sure the hourly amount is at least minimum wage and you can pay the $250.00 anyway your payroll system will accept it. I'd likely call it Commission, Bonus or Other Pay just to save having to build another pay code.

    The $250.00 along with hourly wages just needs to be considered regular wages.


    • #3
      Agreed on that, but keep in mind should this employee ever work overtime, the $250 must be factored into his overtime rate.