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State Updates

California Supreme Court Clarifies Overtime Calculations Involving Flat-Sum Bonuses

04/05/18

The California Supreme Court recently issued a decision, (see Alvarado v. Dart Container Corp. of California), significantly impacting how employers must calculate overtime pay when non-exempt employees receive a flat-sum bonus. The Court ruled that when calculating overtime during pay periods when an employee received a flat-sum bonus, employers must divide the bonus by the number of non-overtime hours actually worked.
Thursday, April 5, 2018/Author: ADP Admin/Number of views (14456)/Comments (0)/
Categories: State Compliance UpdateCalifornia
Tags: 04/05/18California

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