Hey Compliance Warriors!
DOL is purposing to expand the eligibility of bonuses for certain types of employees. Read on…Article via: dol.gov
“The U.S. Department of Labor’s Wage and Hour Division (WHD) today announced a Notice of Proposed Rulemaking (NPRM) that would allow job creators to offer bonuses or other incentive-based pay to employees whose hours vary from week to week.
The proposal would revise the regulation for computing overtime compensation for salaried, non-exempt employees who work hours that vary each week (i.e., a fluctuating workweek) under the Fair Labor Standards Act (FLSA). It also clarifies that bonus and premium payments on top of fixed salaries are compatible with the fluctuating workweek method of compensation, and that supplemental payments must be included when calculating the regular rate of pay as appropriate under the FLSA. The proposal includes examples and minor revisions to make the rule easier to understand.
“This proposal offers more options for bonus pay and exemplifies the U.S. Department of Labor’s commitment to reduce unnecessary burdens in order to benefit America’s workers,” said U.S. Secretary of Labor Eugene Scalia. “At a time when there are more job openings than job seekers, this proposal would allow America’s workers to reap even more benefits from the competitive labor market.”
“For far too long, job creators have faced uncertainty regarding their ability to provide bonus pay for workers with fluctuating workweeks,” Wage and Hour Division Administrator Cheryl Stanton said. “This proposed rule will provide much-needed clarity for job creators who are looking for new ways to better compensate their workers.”
This NPRM is available for public comment for 30 days. The Department encourages interested parties to submit comments on the proposed rule. More information about the NPRM is available at the Proposed Rule Website.”
For more information: https://www.dol.gov/newsroom/releases/whd/whd20191104