Additional Earnings and Compensation
In addition to a wage or salary, employees may receive additional compensation, such as tips, shift premiums, paid time off, and bonuses. The discussion below looks at some of the issues faced in handling these earnings. A company may have other policies they may have to follow as well.
What are some examples of additional earnings? Click on each topic below to learn more.
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FLSA does not require employers to pay employees for days or hours not worked such as holiday, vacation, or sick pay when determining regular rate of pay for overtime Paid Sick Leave provided by federal contractors.
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- Paid sick leave provided by Federal Contractors
- Paid sick leave provided by Federal Contractors The DOL has issued final regulations requiring certain government contractors to provide their employees with up to 7 days of paid sick leave annually, including paid leave allowing for family care.
- Bonuses
- Employees may receive many different types of supplemental payments from their employers such as bonuses, commissions, production pay, etc., as an incentive for increased productivity. Under the FLSA, these payments may be a factor in determining an employee’s regular rate of pay for overtime purposes.
- Final Pay
- Special processing may be needed for the final paycheck of an employee whose employment terminates. Although the FLSA does not require immediate payment of an employee’s final pay, many states impose time limits on when the employee’s final pay must be issued and impose penalties for an employer’s failure to provide the pay within that timeframe.