Nondiscretionary bonuses must be included when determining the regular rate of pay for computing overtime if the bonus is based on hours worked, production or proficiency.

Employers generally do not have to include discretionary bonuses or money paid as gifts at a holiday or other special occasions when determining the regular rate of pay.

Employers often provide employees with nondiscretionary bonuses but fail to include these bonuses when calculating the amount of overtime due to the employee. By excluding nondiscretionary bonuses from the overtime calculation, employers may be paying the employee less overtime than is actually earned.

A complex set of laws govern the California overtime requirements for nonexempt employees when an employee earns benefits in addition the employee's hourly wages. Numerous exceptions limit what benefits are included in calculating the employee's overtime pay rate.

To navigate the complex statutes regarding whether you are receiving overtime in compliance with California law, you need to speak with an experienced attorney who is familiar with the law in this area.

If you believe that your employer has failed to follow the law in payment of your wages, contact Lavi & Ebrahimian, LLP, today for a free consultation. Our experienced employment attorneys will evaluate your options under the law and can help you obtain the most complete relief possible.