New FLSA Regulations Impact Variable Pay Design


Variable pay programs are becoming more common for non-exempt employees. The new FLSA regulations have clarified the impact on overtime pay and the standard threshold salary level for FLSA exemption. For non-exempt employees, any non-discretionary bonus needs to be included in their overtime pay. Plus, under the new regulation, 10% of any bonus can be included with the salary to determine whether pay exceeds the standard pay threshold of $47,476. Other factors may impact the cost and effectiveness of variable pay programs. Continue reading…

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