Are employers allowed to offer bonuses in lieu of wages?

In New Mexico, bonuses in lieu of wages can be offered by employers but there are restrictions. For example, employers must make sure that any bonuses given in lieu of wages do not reduce the employee’s wages below minimum wage. Employers must also provide written notice to employees about bonus pay that will be replacing part of their wages. This notification must include the amount of the bonus, what types of hours it will cover, and the rate that will be paid for those hours. Under New Mexico wage and hour laws, bonuses in lieu of wages are typically not subject to overtime pay. This is because bonuses are seen as extra compensation, which overtime pay does not cover. However, if an employer pays a bonus and it is based on the number of hours worked, it may be considered part of the employee’s wages and subject to overtime pay. Overall, employers can offer bonuses in lieu of wages, but must make sure that their practices comply with New Mexico wage and hour laws. It is important that employers provide clear information to their employees about bonuses and the rules regarding when those bonuses will be paid. Doing so will help ensure that employees are properly compensated for their work.

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Are employers allowed to offer bonuses in lieu of wages?

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