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

Bonuses are a form of payment that is typically given to employees in addition to regular wages. In Virginia, the calculation of bonuses for employees paid by the hour is governed by wage and hour law. Bonuses for employees paid by the hour must be calculated and paid out in the same manner as regular wages. This means that bonuses must be based on the hours actually worked. For example, if an employee works 40 hours a week, they must receive the same bonus per hour as they would their regular wage. If a bonus is given in the form of a set amount, that bonus must be divided by the hours worked to calculate how much the bonus adds to their regular wage per hour. Bonuses must be paid out in the same pay period as the wages they are based on. This means that if an employee earns a bonus in the same pay period that they worked for, the bonus must be included in that paycheck. If the bonus is for the previous pay period, it must be added to the next paycheck. Employers must also make sure that the bonus does not reduce the employee’s regular wage per hour below minimum wage. In Virginia, this means that the minimum wage must be at least $7.25 per hour, and if a bonus is calculated as part of an employee’s wage, this wage must not fall below this amount. In general, bonuses for employees paid by the hour must be calculated in the same manner as regular wages. Employers must make sure to include them in the same pay period, and take care to ensure that the bonus does not reduce the regular wage paid per hour below the minimum wage.

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

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