EmpleoPregunta 938 de 1605

When calculating overtime, an employee's 'regular rate of pay' must include which of the following in addition to the base hourly wage?

a.Nondiscretionary bonuses and certain incentive pay
b.Discretionary holiday gifts
c.The value of employer-paid health insurance premiums
d.Reimbursed mileage expenses

Explicación

Overtime is calculated on the 'regular rate of pay,' which includes not just the base hourly wage but also nondiscretionary bonuses, shift differentials, commissions, and certain incentive pay. Truly discretionary gifts, expense reimbursements, and employer health-premium contributions are generally excluded. Failing to fold a production bonus into the regular rate is a common overtime error that underpays workers.

Referencia Legal: Regular rate of pay; overtime calculation

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Revisado por Abraham Chen Licensed California General Contractor (CSLB License #1101856 verificar)
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