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Employee Bonus Protection: No Impact on Overtime Rate.

This act aims to ensure that performance-based bonuses, such as those for productivity, quality, or sales, are not included when calculating an employee's regular rate for overtime pay. This means employees can receive additional compensation for good performance without it affecting their hourly rate for overtime purposes, potentially encouraging better work and increasing their overall earnings.
Key points
Performance-based payments (e.g., for productivity, quality, efficiency, sales) will not affect the regular rate for overtime calculation.
Bonus plans must be in writing, available to employees, and based on a clear formula to ensure fairness and transparency.
The goal is to allow employers to reward employees for performance without complicating overtime calculations, potentially boosting employee motivation and earnings.
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Expired
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Additional Information
Print number: 118_HR_741
Sponsor: Rep. Calvert, Ken [R-CA-41]
Process start date: 2023-02-02
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Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Employee Bonus Protection Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_741.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2023-02-02.

What are the main provisions?

Key points include:

  • Performance-based payments (e.g., for productivity, quality, efficiency, sales) will not affect the regular rate for overtime calculation.
  • Bonus plans must be in writing, available to employees, and based on a clear formula to ensure fairness and transparency.
  • The goal is to allow employers to reward employees for performance without complicating overtime calculations, potentially boosting employee motivation and earnings.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Calvert, Ken [R-CA-41].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Education and the Workforce.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-25.

CATEGORIES

Labor