In California, hourly employees who receive bonuses should pay close attention to the calculation of their regular rate of pay. This is crucial because California wage laws require that the regular rate of pay is recalculated when factoring in bonuses. Failing to do so could result in underpayment and potential legal issues. In this blog, we will discuss the importance of ensuring that hourly employees with bonuses have their regular rate of pay recalculated in accordance with California wage laws. Importance of Recalculating Regular Rate of Pay Legal Compliance : California labor laws mandate that non-discretionary bonuses, such as production or performance bonuses, must be included in the calculation of the regular rate of pay for overtime purposes. Failure to do so could lead to violations of state labor laws. Overtime Pay Accuracy : Recalculating the regular rate of pay ensures that hourly employees receive the correct amount of overtime pay. By including non-discretionary bonuses
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