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California Supreme Court Changes Overtime Calculation and Gives a Huge Bonus To Employees

By: Vorys, Sater, Seymour and Pease LLP.

For California employers, no good deed goes unpunished. Dart Container Corporation paid its employees, in addition to their normal hourly wage, a flat sum $15 attendance bonus if they were scheduled to work on a Saturday or Sunday. Under both the Fair Labor Standards Act (FLSA) and the California Labor Code, the attendance bonus must be factored into an employee’s regular rate of pay so that the employee’s overtime pay rate reflects all the forms of regular compensation that the employee earned. Read more.