© Copyright 2016 ADP LLC. 5800 Windward Pkwy | Alpharetta, GA 30005
Please Contact Us for More Information: 800-000-0000
Author: ADP Admin/Wednesday, March 28, 2018/Categories: Compliance Corner
In California, a flat-sum bonus is generally considered to be a bonus that does not increase or decrease based on the amount of time worked or production of the employee. As explained below, this decision effectively rejects the federal formula for calculating overtime when an employee receives a flat-sum bonus. Please note that the court’s opinion states that this ruling is effective retroactively. California Overtime Calculation: In California, employers must pay non-exempt employees 1.5 times their “regular rate of pay” for: