Is Bonus Included When Calculating Overtime Pay Rate?

Yes, if it is a non-discretionary bonus. A non-discretionary bonus is included in determining the regular rate of pay for computing overtime when it is based upon hours worked, production or proficiency.

Discretionary bonuses or sums paid as gifts at a holiday or other special occasions, such as a reward for good service, which are not measured by or dependent upon hours worked, production or efficiency, are not included for purposes of determining the regular rate of pay.

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