Introduction to the Fair Labor Standards Act (FLSA)

E. E XAMPLES OF P AYMENTS I NCLUDED IN THE R EGULAR R ATE

Shift differentials; 195

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Retroactive pay increase; 196

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 Educational and other incentive pay; 197

Standby pay; 198

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 Awards for performance on the job; 199

Merit bonuses; 200

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Hazard pay; 201

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Shooting pay;

Bilingual pay; 202

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Longevity pay; 203

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Special assignment pay;

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Acting pay;

 Salary supplements paid pursuant to a disability policy to employees assigned to a lower-paid classification while disabled; 204

 Reasonable cost to the employer of free meals provided to employees; 205

 Bonuses set forth in a collective bargaining agreement; 206

 Cash in lieu of health or other insurance-type benefits. 207

Includable lump sum payments may be disregarded by employers in computing the regular rate until the time when the lump sum amount can be ascertained. Once the amount of the lump sum can be ascertained, employers must apportion back the lump sum over the workweeks of the period during which it was earned. A public employee must then receive an additional amount of compensation for each workweek that he worked overtime during the period equal to one-half of the hourly rate of pay allocable to the bonus for that week multiplied by the number of overtime hours worked during that week. 208 Examples of such lump sums include cash-in-lieu payments and bonuses. F. T IMELY P AYMENTS OF W AGES The FLSA does not regulate how often an employer pays its employees. 209 Employers are free to set paydays on a weekly, bi-weekly, monthly or other frequency. However, once a payday is established for a workweek, the minimum wages for all hours worked in that workweek are due on the regular payday for that workweek. 210

Introduction to the Fair Labor Standards Act (FLSA) ©2020 (s) Liebert Cassidy Whitmore 39