Third Circuit: Third Party Bonuses May Be Factored into the Regular Rate
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APPLIES TO All Employers with DE, NJ, and PA Employees |
EFFECTIVE August 20, 2019 |
QUESTIONS? Contact HR On-Call |
In Department of Labor v. Bristol Excavating, Inc., the Third Circuit Court of Appeal stated that third-party bonuses may be required to be factored in the regular hourly rate for purposes of calculating overtime. The court said that the determinative factor is the agreement of “remuneration for employment” between the employer and employee, which must be reviewed on a case-by-case basis.