By Cathleen S. Yonahara, JD
A California employer followed a federal regulation for calculating overtime on a flat-rate bonus. An employee filed a lawsuit alleging that the calculation was improper and that the employer should have used the method for calculating flat-rate bonuses set forth in the California Division of Labor Standards Enforcement (DLSE) manual. On appeal, the court analyzed whether the employer’s calculation of overtime on a flat-rate bonus complied with California law.
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Facts. Dart Container Corporation of California produces food service products, including cups and plates. According to Dart’s bonus policy, an attendance bonus of $15 per day would be paid to any employee who worked a full shift on Saturday or Sunday, regardless of the number of hours worked beyond the normal scheduled length of a shift.