On Jan. 5, 2026, the U.S. Department of Labor (DOL) issued Opinion Letter FLSA2026-2, responding to an employee’s question regarding whether Section 7(e) of the Fair Labor Standards Act (FLSA) permits an employer to exclude certain bonus payments from an employee’s regular rate of pay. The question concerns an employer’s bonus plan that allows employees to earn supplemental performance-based bonuses for each pay period. If earned, these bonuses would apply to all hours worked in that pay period.
Click the following link to read: DOL Confirms Bonus Payments Under Predetermined Plans Must Be Included in Employees’ Regular Rate of Pay.
