Bonuses or Other Incentive-Based Pay Allowed for Employees Whose Work Hours Vary Each Week

The U.S. Department of Labor (USDOL) Wage and Hour Division (WHD) announced a final rule that expressly states that employers can pay bonuses, premium payments, or other additional pay, such as commissions and hazard pay, to salaried, non-exempt employees compensated using the fluctuating workweek method of computing overtime under the Fair Labor Standards Act (FLSA). The rule will be effective 60 days after publication in the Federal Register (publication is currently pending). For examples and more information, see the WHD announcement.