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Content Last Revised: 1/26/68
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CFR  

Code of Federal Regulations Pertaining to U.S. Department of Labor

Title 29  

Labor

 

Chapter V  

Wage and Hour Division, Department of Labor

 

 

Part 778  

Overtime Compensation

 

 

 

Subpart C  

Payments That May Be Excluded From the ``Regular Rate''

29 CFR 778.208 - Inclusion and exclusion of bonuses in computing the ``regular rate.''

  • Section Number: 778.208
  • Section Name: Inclusion and exclusion of bonuses in computing the ``regular rate.'' 
    Section 7(e) of the Act requires the inclusion in the regular rate 
of all remuneration for employment except seven specified types of 
payments. Among these excludable payments are discretionary bonuses, 
gifts and payments in the nature of gifts on special occasions, 
contributions by the employer to certain welfare plans and payments made 
by the employer pursuant to certain profit-sharing, thrift and savings 
plans. These are discussed in Secs. 778.211 through 778.214. Bonuses 
which do not qualify for exclusion from
the regular rate as one of these types must be totaled in with other 
earnings to determine the regular rate on which overtime pay must be 
based. Bonus payments are payments made in addition to the regular 
earnings of an employee. For a discussion on the bonus form as an 
evasive bookkeeping device, see Secs. 778.502 and 778.503.
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