3rd Circ. Says Some Bonuses May Be Left Out Of OT Rates

Law360 (August 20, 2019, 1:50 PM EDT) -- The Third Circuit ruled Tuesday that employers don't automatically have to factor in bonuses that workers receive from third parties when calculating overtime pay, tackling an issue of first impression.

A three-judge panel held that U.S. Magistrate Judge Karoline Mehalchick was wrong to find that incentive bonuses paid to workers by third parties count as "remuneration for employment" and should be rolled into the pay rate that employers use to calculate workers' overtime. The Third Circuit noted that the judge's position was the same as one adopted by the U.S. Department of Labor.

The ruling came in a case involving Bristol...

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