In this program, Tammy McCutchen, a former Administrator of the U.S. Department of Labor’s Wage and Hour Division, will discuss common reward programs for non-exempt employees and how they impact overtime pay. Often, when considering the cost of incentive pay, employers fail to consider the related cost of the increased overtime pay. For example, a non-exempt employee who worked 150 regular hours and 25 overtime hours during a month in which he received a $200 production bonus is also owed an additional $14.29 in overtime. Although this seems a modest amount by itself, over time and for many employees, the overtime costs quickly mount up – as does the risk of class action litigation if the employer fails to pay this overtime.
In addition to providing training on how to calculate additional overtime due on bonuses, incentive pay, prizes and awards, Tammy will also cover reward programs that do not require the employer to calculate and pay additional overtime to non-exempt employees.