If you are an employee in California, it is important to understand how bonuses can affect your overtime pay and your regular rate of pay. California has some of the strictest overtime laws in the country, and failure to comply with these laws can result in costly lawsuits for employers. In this blog post, we will explore how bonuses affect your pay and what you need to know to ensure you are being paid fairly. How Bonuses Affect Overtime Pay Under California law, non-discretionary bonuses must be included in an employee's regular rate of pay when calculating overtime. A non-discretionary bonus is a bonus that is promised to an employee in advance and is tied to the employee's performance or productivity. Examples of non-discretionary bonuses include production bonuses, attendance bonuses, and safety bonuses. When calculating overtime pay for employees who receive non-discretionary bonuses, the employer must add the bonus to the employee's regular rate of pay. The regular r...
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