Bonus Calculations – Additional Pay Options (SNF/AL)
Members offering bonuses or other wage options to staff to pick up open shifts, stay over, or for other incentive purposes should be cognizant of the Department of Labor (DOL) wage and benefit implications. It is not as easy as simply offering an additional sum or even a gift card with a cash value. The DOL expects that wage & hour rules apply to bonuses as well as regular wages. The DOL has been auditing pay practices of employers, so the association is sharing some tips & resources to help you navigate through to appropriately provide your staff with an incentive, while staying within the applicable wage & hour requirements.
- Fact Sheet #54: The Health Care Industry and Calculating Overtime Pay
- Fact Sheet #56C: Bonuses under the Fair Labor Standards Act (FLSA)
- Fact Sheet #82: Fluctuating Workweek Method of Computing Overtime Under the Fair Labor Standards Act (FLSA) / “Bonus Rule” Final Rule
The link below directs to the DOLs ELaws Advisors webpage which helps employers and employees understand overtime pay principles. An Overtime Calculator is also included on the page to calculate overtime pay based on an actual data for a sample pay period.
Fair Labor Standards Act (FLSA) Overtime Calculator Advisor