Yes, California is different, especially when it comes to wage and hour laws. And yes, California can be more expensive, especially when it comes to complying with the state's overtime laws. One area in particular is troubling – California's overtime requirements for flat sum bonuses.
While California's Labor Commissioner has long found that a different overtime calculation must be used for certain “flat sum" bonuses, many employers failed to comply with this position. But when the California Supreme Court adopted this view in its Alvarado v. Dart Container Corp. decision in March 2018, there was no longer a place to hide. Yet, many employers still do not fully understand the difference between a flat sum bonus and a production bonus or the significant impact on the overtime calculation if they get this wrong.
In this presentation, we will focus our time solely on addressing this unique quirk in California law, including a detailed overview of what qualifies as a flat sum bonus, samples of the overtime calculation applicable to flat sum bonuses, and options for changing the parameters of certain compensation to remove the payment from flat sum bonus consideration.
11:00 a.m. - 12:00 p.m. PT
12:00 - 1:00 p.m. MT
1:00 - 2:00 p.m. CT
2:00 - 3:00 p.m. ET