Are employers allowed to offer bonuses in lieu of wages?

Yes, employers in the state of Washington may offer bonuses in lieu of wages; however, there are special rules and regulations employers must follow. According to Washington State’s Department of Labor & Industries, bonuses must be included in the calculation of overtime wages, and employers cannot average out bonuses given over the course of a pay period to make up for any wages lost from overtime. Employers must also be aware of the minimum wage requirements set out by the state. Bonuses must be substantial enough to cover the minimum wage for all hours worked in any given pay period. Bonuses alone cannot be used to bring an employee’s wages up to the minimum wage established by the state. In addition, employers must ensure that the bonuses they offer meet all other wage and hour law requirements, such as the Equal Pay Act, which prohibits employers from discriminating against employees in the same workplace based on their sex. Employers must also take into account any applicable collective bargaining agreements and make sure that their bonuses do not conflict with them. Overall, employers in Washington can offer bonuses in lieu of wages, but they must follow all applicable wage and hour laws and regulations.

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Are employers allowed to offer bonuses in lieu of wages?

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