›

Bonus Pay

payrollgalpayrollgal 3 Posts
in Compensation Vote Up0Vote Down
Can you pay selected hourly employees a bonus, say for certain sales or for getting a new account? I have heard from my supervisor that you cannot pay hourly employees a bonus because of discrimination, you can only pay salary employees a bonus. Is this true? Any info would be greatly appreciated.
Share on Facebook Share on Twitter

Comments

  • 6 Comments sorted by Votes Date Added
  • amwkimamwkim 72 Posts
    PMVote Up0Vote Down
    In all of my years in payroll and HR (and there has been a lot :-) )I have never heard of this. I would like to know where your supervisor got this information.
    Share on Facebook Share on Twitter
  • Don DDon D 9,834 Posts
    PMVote Up0Vote Down
    I agree with amwkim. Never heard of this. I think your supervisor was napping in that seminar.
    Share on Facebook Share on Twitter
  • ShadowfaxShadowfax 910 Posts
    PMVote Up0Vote Down
    Of course you may pay hourly emp/ees a bonus - and on any basis you wish. The difficulty becomes folding the bonus into the base for calculating o/t. Once you are qware you have to add the bonus to the base, no problem.
    Share on Facebook Share on Twitter
  • payrollgalpayrollgal 3 Posts
    PMVote Up0Vote Down
    What are the new regs on the OT status? Does the bonus play into what their wage would be and how do i go about calculating this?
    Share on Facebook Share on Twitter
  • ShadowfaxShadowfax 910 Posts
    PMVote Up0Vote Down
    I will admit I havn't spent much time as yet on the new regs, and particularly how this may be impacted. However, I don't recall seeing anything to change this aspect of the regs - others may be better equipped to answer. And, I havn't had to do this for a long time, but, production bonus, time bonus, attendance bonus, those kinds of things are simply added to the pay period in which they are earned, divided by the # of hours worked, and that is the regualar rate for that period. Emp/ers should be careful to develop these bonus plans so that the bonus payment reflects only one pay period, in order to avoid having to re-calculate reg/o/t rate every few minutes. Bonuses that are absolutely discretionary, that is, just because the e/er is a nice guy (or gal) do not need to be added back in. Howsumever, discretionay bonuses given over a period of time may lose the discretionary status, and create an unintended violation of the FLSA. Check regs 778.100-200
    Share on Facebook Share on Twitter
  • payrollgalpayrollgal 3 Posts
    PMVote Up0Vote Down
    Thanks!!
    Share on Facebook Share on Twitter
Sign In or Register to comment.