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

When employees are paid by the hour, bonuses are calculated based on the amount of hours they have worked. Generally, bonuses are paid out on a weekly or monthly basis. In Washington State, employers are required to provide bonuses based on the hours worked within a given period. Bonuses must be paid within the same pay cycle and must be based on the regular rate of pay used for calculating regular wages. When calculating bonuses, employer must take into account the actual hours worked, including overtime and any holiday pay. Any additional pay such as tips, commissions, expense reimbursements, or other forms of compensation must also be taken into consideration. Bonuses may not be based off of any other form of pay or on a set percentage of an employee’s wages. Employers are also required to display a notice of bonus pay requirements and applicable laws in the workplace. A notice must be posted in an area that is visible to all employees. Any bonus payments must be clearly and accurately stated in an employee’s wage statement. Bonuses must be paid in accordance with Washington State wage and hour laws. If an employee believes they have not received all the wages they are due, they may be eligible to file a wage claim with the Washington State Department of Labor & Industries.

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

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