Does a monthly bonus need to be counted into regular rate for overtime?

UPDATED: Sep 30, 2022

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Sep 30, 2022Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Does a monthly bonus need to be counted into regular rate for overtime?

I work for a quick serve restaurant, and we are paid hourly. We also receive a bonus at the end of each period 13×4 weeks that are based on a percentage of profit, 15% and are broken down throughout the management structure. Of that percentage, it is based on labor goals, cost of goods sold and scores from corporate audits. Based on the FLSA section 778.208, do these payments need to be

calculated into the

Asked on April 7, 2017 under Employment Labor Law, Minnesota


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

No, bonuses or incentive payments or profit sharing based on company profit do not need to be factored into your regular rate for purposes of overtime. Because it is based on profit, which can fluctuate widely and which is only in the smallest degree dependent on the work or effort of any one employee, it is not sufficiently regular or guaranteed to be considered part of regular wages for this purpose.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption