How are bonuses calculated when employees are paid by the hour?

Bonuses are often calculated when employees are paid by the hour. In North Carolina, the laws regulating how bonuses are calculated vary depending on the type of bonus and the employer’s policies. Generally, bonuses are calculated based on an employee’s wage rate and the number of hours worked. If an employee is paid overtime, bonuses are calculated by taking the employee’s regular wage rate multiplied by the number of hours worked, plus one and a half times the employee’s regular wage rate multiplied by any overtime hours worked. If the bonus is a non-discretionary bonus, such as a shift premium or attendance bonus, it must be included in the employee’s regular rate of pay for computing overtime. This means that the employee’s regular rate of pay is increased by the bonus amount and then multiplied by one-and-a-half for overtime hours worked. Some employers may also agree to pay a bonus on top of the overtime wage, but this is not required by law. Bonuses are a great way for employers to reward their employees for their hard work and dedication. It’s important for employers to understand the wage and hour laws in North Carolina and be aware of how they can calculate bonuses in order to comply with the law. Understanding the law is important to ensure employees are paid correctly, in full, and on time.

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How are bonuses calculated when employees are paid by the hour?

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