Can my company make a bonus program that disregards overtime laws?

UPDATED: Sep 30, 2022

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Can my company make a bonus program that disregards overtime laws?

My company’s bonus program works by where you make a little more by vehicle you inspect if your hit a certain quota. For example, do 25 cars at least get a $6 per car bonus but you have to inspect at least 25 cars or no bonus,

just your regular hourly pay. They say that they will no longer be paying overtime pay. Can they do that?

Asked on March 4, 2016 under Employment Labor Law, Arizona


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

No, they can't do this. Hourly employees must be paid overtime (time and a half) whenever they work morw than 40 hours in a week; the law (e.g, the Fair Labor Standards Act, or FLSA) mandates this. Employers may pay a bonus in addition, but they cannot pay a bonus instead of overtime. You may wish to discuss the matter with the state department of labor and possibly file a complaint.

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.

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